Correlation Between FANDIFI TECHNOLOGY and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and Origin Agritech, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and Origin Agritech.
Diversification Opportunities for FANDIFI TECHNOLOGY and Origin Agritech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and Origin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and Origin Agritech go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and Origin Agritech
Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to generate 4.3 times more return on investment than Origin Agritech. However, FANDIFI TECHNOLOGY is 4.3 times more volatile than Origin Agritech. It trades about 0.05 of its potential returns per unit of risk. Origin Agritech is currently generating about -0.02 per unit of risk. If you would invest 3.20 in FANDIFI TECHNOLOGY P on October 12, 2024 and sell it today you would lose (3.15) from holding FANDIFI TECHNOLOGY P or give up 98.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. Origin Agritech
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| Origin Agritech |
FANDIFI TECHNOLOGY and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and Origin Agritech
The main advantage of trading using opposite FANDIFI TECHNOLOGY and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY 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.| FANDIFI TECHNOLOGY vs. Eidesvik Offshore ASA | FANDIFI TECHNOLOGY vs. TIANDE CHEMICAL | FANDIFI TECHNOLOGY vs. EAGLE MATERIALS | FANDIFI TECHNOLOGY vs. Heidelberg Materials AG |
| Origin Agritech vs. Fair Isaac Corp | Origin Agritech vs. The Hongkong and | Origin Agritech vs. Pentair plc | Origin Agritech vs. NH HOTEL GROUP |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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