Correlation Between Origin Agritech and JINS HOLDINGS

Can any of the company-specific risk be diversified away by investing in both Origin Agritech and JINS HOLDINGS 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 Origin Agritech and JINS HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Origin Agritech and JINS HOLDINGS INC, you can compare the effects of market volatilities on Origin Agritech and JINS HOLDINGS 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 Origin Agritech with a short position of JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and JINS HOLDINGS.

Diversification Opportunities for Origin Agritech and JINS HOLDINGS

-0.63

Correlation Coefficient

Origin Agritech  JINS HOLDINGS

Excellent diversification

The 3 months correlation between Origin and JINS is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC and Origin Agritech 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 Origin Agritech are associated (or correlated) with JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of Origin Agritech i.e., Origin Agritech and JINS HOLDINGS go up and down completely randomly.

Pair Corralation between Origin Agritech and JINS HOLDINGS

Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the JINS HOLDINGS. In addition to that, Origin Agritech is 2.27 times more volatile than JINS HOLDINGS INC. It trades about -0.09 of its total potential returns per unit of risk. JINS HOLDINGS INC is currently generating about 0.04 per unit of volatility. If you would invest  3,820  in JINS HOLDINGS INC on October 6, 2024 and sell it today you would earn a total of  100.00  from holding JINS HOLDINGS INC or generate 2.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Origin Agritech  vs.  JINS HOLDINGS INC

Origin Agritech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Origin Agritech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

JINS HOLDINGS INC

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JINS HOLDINGS INC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, JINS HOLDINGS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Origin Agritech and JINS HOLDINGS

The main advantage of trading using opposite Origin Agritech and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.

The idea behind Origin Agritech and JINS HOLDINGS INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.