Correlation Between HOYA and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both HOYA 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 HOYA and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOYA Corporation and Origin Agritech, you can compare the effects of market volatilities on HOYA 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 HOYA with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOYA and Origin Agritech.
Diversification Opportunities for HOYA and Origin Agritech
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HOYA and Origin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding HOYA Corp. and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and HOYA 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 HOYA Corporation 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 HOYA i.e., HOYA and Origin Agritech go up and down completely randomly.
Pair Corralation between HOYA and Origin Agritech
Assuming the 90 days horizon HOYA Corporation is expected to generate 1.35 times more return on investment than Origin Agritech. However, HOYA is 1.35 times more volatile than Origin Agritech. It trades about 0.09 of its potential returns per unit of risk. Origin Agritech is currently generating about 0.06 per unit of risk. If you would invest 3,480 in HOYA Corporation on August 29, 2024 and sell it today you would earn a total of 8,590 from holding HOYA Corporation or generate 246.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.53% |
| Values | Daily Returns |
HOYA Corp. vs. Origin Agritech
Performance |
| Timeline |
| HOYA |
| Origin Agritech |
HOYA and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOYA and Origin Agritech
The main advantage of trading using opposite HOYA and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOYA 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.| HOYA vs. Becton Dickinson and | HOYA vs. Superior Plus Corp | HOYA vs. NMI Holdings | HOYA vs. SIVERS SEMICONDUCTORS AB |
| Origin Agritech vs. Playtech plc | Origin Agritech vs. AAC TECHNOLOGHLDGADR | Origin Agritech vs. SCANDMEDICAL SOLDK 040 | Origin Agritech vs. ONWARD MEDICAL BV |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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