Correlation Between Apple and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Origin Agritech, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Origin Agritech.
Diversification Opportunities for Apple and Origin Agritech
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apple and Origin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Apple 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 Apple Inc 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 Apple i.e., Apple and Origin Agritech go up and down completely randomly.
Pair Corralation between Apple and Origin Agritech
Assuming the 90 days trading horizon Apple is expected to generate 1.77 times less return on investment than Origin Agritech. But when comparing it to its historical volatility, Apple Inc is 3.08 times less risky than Origin Agritech. It trades about 0.09 of its potential returns per unit of risk. Origin Agritech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Origin Agritech on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Origin Agritech or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Origin Agritech
Performance |
| Timeline |
| Apple Inc |
| Origin Agritech |
Apple and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Origin Agritech
The main advantage of trading using opposite Apple and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. Magic Software Enterprises | Apple vs. ASURE SOFTWARE | Apple vs. USWE SPORTS AB | Apple vs. SPORTING |
| Origin Agritech vs. FORMPIPE SOFTWARE AB | Origin Agritech vs. PTT Global Chemical | Origin Agritech vs. Magic Software Enterprises | Origin Agritech vs. UPDATE SOFTWARE |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |