Correlation Between Kuehne Nagel and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Kuehne Nagel 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 Kuehne Nagel and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuehne Nagel International and Origin Agritech, you can compare the effects of market volatilities on Kuehne Nagel 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 Kuehne Nagel with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne Nagel and Origin Agritech.
Diversification Opportunities for Kuehne Nagel and Origin Agritech
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuehne and Origin is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Kuehne Nagel 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 Kuehne Nagel International 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 Kuehne Nagel i.e., Kuehne Nagel and Origin Agritech go up and down completely randomly.
Pair Corralation between Kuehne Nagel and Origin Agritech
Assuming the 90 days trading horizon Kuehne Nagel International is expected to under-perform the Origin Agritech. But the stock apears to be less risky and, when comparing its historical volatility, Kuehne Nagel International is 3.59 times less risky than Origin Agritech. The stock trades about -0.08 of its potential returns per unit of risk. The Origin Agritech is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 232.00 in Origin Agritech on September 5, 2024 and sell it today you would earn a total of 22.00 from holding Origin Agritech or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuehne Nagel International vs. Origin Agritech
Performance |
| Timeline |
| Kuehne Nagel Interna |
| Origin Agritech |
Kuehne Nagel and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne Nagel and Origin Agritech
The main advantage of trading using opposite Kuehne Nagel and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne Nagel 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.| Kuehne Nagel vs. Ultra Clean Holdings | Kuehne Nagel vs. ULTRA CLEAN HLDGS | Kuehne Nagel vs. Sunny Optical Technology | Kuehne Nagel vs. Casio Computer CoLtd |
| Origin Agritech vs. NISSIN FOODS HLDGS | Origin Agritech vs. Ebro Foods SA | Origin Agritech vs. Tyson Foods | Origin Agritech vs. CAL MAINE FOODS |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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