Correlation Between SCANDMEDICAL SOLDK-040 and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Origin Agritech, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and Origin Agritech.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and Origin Agritech
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCANDMEDICAL and Origin is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and Origin Agritech go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and Origin Agritech
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to generate 0.79 times more return on investment than Origin Agritech. However, SCANDMEDICAL SOLDK 040 is 1.26 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 0.04 per unit of risk. If you would invest 74.00 in SCANDMEDICAL SOLDK 040 on September 1, 2024 and sell it today you would earn a total of 5.00 from holding SCANDMEDICAL SOLDK 040 or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Origin Agritech
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Origin Agritech |
SCANDMEDICAL SOLDK-040 and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and Origin Agritech
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 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.| SCANDMEDICAL SOLDK-040 vs. HF SINCLAIR P | SCANDMEDICAL SOLDK-040 vs. Addus HomeCare | SCANDMEDICAL SOLDK-040 vs. Tri Pointe Homes | SCANDMEDICAL SOLDK-040 vs. SEALED AIR |
| Origin Agritech vs. CARSALESCOM | Origin Agritech vs. Uber Technologies | Origin Agritech vs. GEELY AUTOMOBILE | Origin Agritech vs. Playtech plc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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