Correlation Between HOCHSCHILD MINING and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both HOCHSCHILD MINING 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 HOCHSCHILD MINING and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOCHSCHILD MINING and Origin Agritech, you can compare the effects of market volatilities on HOCHSCHILD MINING 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 HOCHSCHILD MINING with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOCHSCHILD MINING and Origin Agritech.
Diversification Opportunities for HOCHSCHILD MINING and Origin Agritech
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between HOCHSCHILD and Origin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and HOCHSCHILD MINING 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 HOCHSCHILD MINING 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 HOCHSCHILD MINING i.e., HOCHSCHILD MINING and Origin Agritech go up and down completely randomly.
Pair Corralation between HOCHSCHILD MINING and Origin Agritech
Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to under-perform the Origin Agritech. But the stock apears to be less risky and, when comparing its historical volatility, HOCHSCHILD MINING is 1.44 times less risky than Origin Agritech. The stock trades about -0.11 of its potential returns per unit of risk. The Origin Agritech is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 238.00 in Origin Agritech on August 30, 2024 and sell it today you would earn a total of 30.00 from holding Origin Agritech or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
HOCHSCHILD MINING vs. Origin Agritech
Performance |
| Timeline |
| HOCHSCHILD MINING |
| Origin Agritech |
HOCHSCHILD MINING and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOCHSCHILD MINING and Origin Agritech
The main advantage of trading using opposite HOCHSCHILD MINING and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOCHSCHILD MINING 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.| HOCHSCHILD MINING vs. Apple Inc | HOCHSCHILD MINING vs. Apple Inc | HOCHSCHILD MINING vs. Superior Plus Corp | HOCHSCHILD MINING vs. SIVERS SEMICONDUCTORS AB |
| Origin Agritech vs. OAKTRSPECLENDNEW | Origin Agritech vs. Jacquet Metal Service | Origin Agritech vs. MCEWEN MINING INC | Origin Agritech vs. URBAN OUTFITTERS |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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