Correlation Between ONWARD MEDICAL and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both ONWARD MEDICAL and Origin Agritech 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 ONWARD MEDICAL and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONWARD MEDICAL BV and Origin Agritech, you can compare the effects of market volatilities on ONWARD MEDICAL and Origin Agritech 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 ONWARD MEDICAL with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONWARD MEDICAL and Origin Agritech.
Diversification Opportunities for ONWARD MEDICAL and Origin Agritech
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ONWARD and Origin is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding ONWARD MEDICAL BV and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and ONWARD MEDICAL 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 ONWARD MEDICAL BV are associated (or correlated) with Origin Agritech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Agritech has no effect on the direction of ONWARD MEDICAL i.e., ONWARD MEDICAL and Origin Agritech go up and down completely randomly.
Pair Corralation between ONWARD MEDICAL and Origin Agritech
Assuming the 90 days horizon ONWARD MEDICAL BV is expected to under-perform the Origin Agritech. But the stock apears to be less risky and, when comparing its historical volatility, ONWARD MEDICAL BV is 1.81 times less risky than Origin Agritech. The stock trades about -0.28 of its potential returns per unit of risk. The Origin Agritech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 192.00 in Origin Agritech on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Origin Agritech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONWARD MEDICAL BV vs. Origin Agritech
Performance |
| Timeline |
| ONWARD MEDICAL BV |
| Origin Agritech |
ONWARD MEDICAL and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONWARD MEDICAL and Origin Agritech
The main advantage of trading using opposite ONWARD MEDICAL and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONWARD MEDICAL position performs unexpectedly, Origin Agritech 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 Origin Agritech will offset losses from the drop in Origin Agritech's long position.| ONWARD MEDICAL vs. CanSino Biologics | ONWARD MEDICAL vs. HYATT HOTELS A | ONWARD MEDICAL vs. COMBA TELECOM SYST | ONWARD MEDICAL vs. NH HOTEL GROUP |
| Origin Agritech vs. Nomad Foods | Origin Agritech vs. BG Foods | Origin Agritech vs. Moneysupermarket Group PLC | Origin Agritech vs. SIDETRADE EO 1 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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