Correlation Between CAIXABANK UNADR and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both CAIXABANK UNADR 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 CAIXABANK UNADR and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAIXABANK UNADR 13 and Origin Agritech, you can compare the effects of market volatilities on CAIXABANK UNADR 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 CAIXABANK UNADR with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAIXABANK UNADR and Origin Agritech.
Diversification Opportunities for CAIXABANK UNADR and Origin Agritech
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CAIXABANK and Origin is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding CAIXABANK UNADR 13 and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and CAIXABANK UNADR 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 CAIXABANK UNADR 13 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 CAIXABANK UNADR i.e., CAIXABANK UNADR and Origin Agritech go up and down completely randomly.
Pair Corralation between CAIXABANK UNADR and Origin Agritech
Assuming the 90 days trading horizon CAIXABANK UNADR 13 is expected to under-perform the Origin Agritech. But the stock apears to be less risky and, when comparing its historical volatility, CAIXABANK UNADR 13 is 2.55 times less risky than Origin Agritech. The stock trades about -0.24 of its potential returns per unit of risk. The Origin Agritech is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 232.00 in Origin Agritech on September 4, 2024 and sell it today you would earn a total of 10.00 from holding Origin Agritech or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAIXABANK UNADR 13 vs. Origin Agritech
Performance |
| Timeline |
| CAIXABANK UNADR 13 |
| Origin Agritech |
CAIXABANK UNADR and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAIXABANK UNADR and Origin Agritech
The main advantage of trading using opposite CAIXABANK UNADR and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAIXABANK UNADR 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.| CAIXABANK UNADR vs. Wyndham Hotels Resorts | CAIXABANK UNADR vs. AXWAY SOFTWARE EO | CAIXABANK UNADR vs. Check Point Software | CAIXABANK UNADR vs. COVIVIO HOTELS INH |
| Origin Agritech vs. SMA Solar Technology | Origin Agritech vs. Aedas Homes SA | Origin Agritech vs. PKSHA TECHNOLOGY INC | Origin Agritech vs. Vishay Intertechnology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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