Correlation Between Origin Agritech and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Schibsted ASA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Origin Agritech and Schibsted ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Schibsted ASA A, you can compare the effects of market volatilities on Origin Agritech and Schibsted ASA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Origin Agritech with a short position of Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Schibsted ASA.
Diversification Opportunities for Origin Agritech and Schibsted ASA
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and Schibsted is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Schibsted ASA A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA A and Origin Agritech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Origin Agritech are associated (or correlated) with Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA A has no effect on the direction of Origin Agritech i.e., Origin Agritech and Schibsted ASA go up and down completely randomly.
Pair Corralation between Origin Agritech and Schibsted ASA
Assuming the 90 days trading horizon Origin Agritech is expected to generate 30.56 times less return on investment than Schibsted ASA. In addition to that, Origin Agritech is 1.43 times more volatile than Schibsted ASA A. It trades about 0.0 of its total potential returns per unit of risk. Schibsted ASA A is currently generating about 0.1 per unit of volatility. If you would invest 1,914 in Schibsted ASA A on September 3, 2024 and sell it today you would earn a total of 1,240 from holding Schibsted ASA A or generate 64.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Schibsted ASA A
Performance |
| Timeline |
| Origin Agritech |
| Schibsted ASA A |
Origin Agritech and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Schibsted ASA
The main advantage of trading using opposite Origin Agritech and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Schibsted ASA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Origin Agritech vs. Gamma Communications plc | Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. Citic Telecom International | Origin Agritech vs. Ribbon Communications |
| Schibsted ASA vs. Superior Plus Corp | Schibsted ASA vs. NMI Holdings | Schibsted ASA vs. Origin Agritech | Schibsted ASA vs. SIVERS SEMICONDUCTORS AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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