Correlation Between RCS MediaGroup and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both RCS MediaGroup 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 RCS MediaGroup and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RCS MediaGroup SpA and Origin Agritech, you can compare the effects of market volatilities on RCS MediaGroup 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 RCS MediaGroup with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCS MediaGroup and Origin Agritech.
Diversification Opportunities for RCS MediaGroup and Origin Agritech
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between RCS and Origin is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding RCS MediaGroup SpA and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and RCS MediaGroup 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 RCS MediaGroup SpA 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 RCS MediaGroup i.e., RCS MediaGroup and Origin Agritech go up and down completely randomly.
Pair Corralation between RCS MediaGroup and Origin Agritech
Assuming the 90 days trading horizon RCS MediaGroup SpA is expected to generate 0.24 times more return on investment than Origin Agritech. However, RCS MediaGroup SpA is 4.11 times less risky than Origin Agritech. It trades about 0.3 of its potential returns per unit of risk. Origin Agritech is currently generating about -0.16 per unit of risk. If you would invest 77.00 in RCS MediaGroup SpA on August 25, 2024 and sell it today you would earn a total of 5.00 from holding RCS MediaGroup SpA or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RCS MediaGroup SpA vs. Origin Agritech
Performance |
| Timeline |
| RCS MediaGroup SpA |
| Origin Agritech |
RCS MediaGroup and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCS MediaGroup and Origin Agritech
The main advantage of trading using opposite RCS MediaGroup and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCS MediaGroup 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.| RCS MediaGroup vs. Superior Plus Corp | RCS MediaGroup vs. NMI Holdings | RCS MediaGroup vs. Origin Agritech | RCS MediaGroup vs. SIVERS SEMICONDUCTORS AB |
| Origin Agritech vs. Mizuho Financial Group | Origin Agritech vs. Mitsui Chemicals | Origin Agritech vs. PT Bank Maybank | Origin Agritech vs. REVO INSURANCE SPA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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