Correlation Between Publicis Groupe and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Publicis Groupe 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 Publicis Groupe and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Publicis Groupe SA and Origin Agritech, you can compare the effects of market volatilities on Publicis Groupe 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 Publicis Groupe with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Publicis Groupe and Origin Agritech.
Diversification Opportunities for Publicis Groupe and Origin Agritech
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Publicis and Origin is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Publicis Groupe SA and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Publicis Groupe 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 Publicis Groupe SA 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 Publicis Groupe i.e., Publicis Groupe and Origin Agritech go up and down completely randomly.
Pair Corralation between Publicis Groupe and Origin Agritech
Assuming the 90 days horizon Publicis Groupe is expected to generate 3.08 times less return on investment than Origin Agritech. But when comparing it to its historical volatility, Publicis Groupe SA is 2.97 times less risky than Origin Agritech. It trades about 0.03 of its potential returns per unit of risk. Origin Agritech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Origin Agritech on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Origin Agritech or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Publicis Groupe SA vs. Origin Agritech
Performance |
| Timeline |
| Publicis Groupe SA |
| Origin Agritech |
Publicis Groupe and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Publicis Groupe and Origin Agritech
The main advantage of trading using opposite Publicis Groupe and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Publicis Groupe 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.| Publicis Groupe vs. WPP PLC ADR | Publicis Groupe vs. Superior Plus Corp | Publicis Groupe vs. NMI Holdings | Publicis Groupe vs. Origin Agritech |
| Origin Agritech vs. CENTURIA OFFICE REIT | Origin Agritech vs. Ryanair Holdings plc | Origin Agritech vs. KENEDIX OFFICE INV | Origin Agritech vs. MAVEN WIRELESS SWEDEN |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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