Correlation Between Sino Land and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Sino Land 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 Sino Land and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino Land and Origin Agritech, you can compare the effects of market volatilities on Sino Land 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 Sino Land with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Land and Origin Agritech.
Diversification Opportunities for Sino Land and Origin Agritech
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sino and Origin is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sino Land and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Sino Land 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 Sino Land 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 Sino Land i.e., Sino Land and Origin Agritech go up and down completely randomly.
Pair Corralation between Sino Land and Origin Agritech
Assuming the 90 days horizon Sino Land is expected to generate 0.73 times more return on investment than Origin Agritech. However, Sino Land is 1.36 times less risky than Origin Agritech. It trades about 0.07 of its potential returns per unit of risk. Origin Agritech is currently generating about -0.01 per unit of risk. If you would invest 30.00 in Sino Land on November 19, 2024 and sell it today you would earn a total of 64.00 from holding Sino Land or generate 213.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sino Land vs. Origin Agritech
Performance |
Timeline |
Sino Land |
Origin Agritech |
Sino Land and Origin Agritech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sino Land and Origin Agritech
The main advantage of trading using opposite Sino Land and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Land 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.Sino Land vs. BIOPHARMA CREDIT DL | Sino Land vs. GWILLI FOOD | Sino Land vs. Commonwealth Bank of | Sino Land vs. CHIBA BANK |
Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. MACOM Technology Solutions | Origin Agritech vs. Sunny Optical Technology | Origin Agritech vs. Cogent Communications Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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