Correlation Between Seino Holdings and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Seino Holdings 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 Seino Holdings and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seino Holdings Co and Origin Agritech, you can compare the effects of market volatilities on Seino Holdings 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 Seino Holdings with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seino Holdings and Origin Agritech.
Diversification Opportunities for Seino Holdings and Origin Agritech
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seino and Origin is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Seino Holdings Co and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Seino Holdings 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 Seino Holdings Co 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 Seino Holdings i.e., Seino Holdings and Origin Agritech go up and down completely randomly.
Pair Corralation between Seino Holdings and Origin Agritech
Assuming the 90 days horizon Seino Holdings is expected to generate 1.1 times less return on investment than Origin Agritech. But when comparing it to its historical volatility, Seino Holdings Co is 4.17 times less risky than Origin Agritech. It trades about 0.24 of its potential returns per unit of risk. Origin Agritech is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 232.00 in Origin Agritech on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Origin Agritech or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seino Holdings Co vs. Origin Agritech
Performance |
| Timeline |
| Seino Holdings |
| Origin Agritech |
Seino Holdings and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seino Holdings and Origin Agritech
The main advantage of trading using opposite Seino Holdings and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seino Holdings 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.| Seino Holdings vs. BLUESCOPE STEEL | Seino Holdings vs. CECO ENVIRONMENTAL | Seino Holdings vs. Tianjin Capital Environmental | Seino Holdings vs. Sims Metal Management |
| Origin Agritech vs. Gamma Communications plc | Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. Citic Telecom International | Origin Agritech vs. Ribbon Communications |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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