Correlation Between Origin Agritech and ARDAGH METAL

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

By analyzing existing cross correlation between Origin Agritech and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on Origin Agritech and ARDAGH METAL 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 ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and ARDAGH METAL.

Diversification Opportunities for Origin Agritech and ARDAGH METAL

-0.21

Correlation Coefficient

Origin Agritech  ARDAGH METAL

Very good diversification

The 3 months correlation between Origin and ARDAGH is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL 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 ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of Origin Agritech i.e., Origin Agritech and ARDAGH METAL go up and down completely randomly.

Pair Corralation between Origin Agritech and ARDAGH METAL

Assuming the 90 days trading horizon Origin Agritech is expected to generate 1.22 times more return on investment than ARDAGH METAL. However, Origin Agritech is 1.22 times more volatile than ARDAGH METAL PACDL 0001. It trades about 0.03 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about 0.02 per unit of risk. If you would invest  204.00  in Origin Agritech on December 29, 2024 and sell it today you would earn a total of  2.00  from holding Origin Agritech or generate 0.98% return on investment over 90 days.

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

Origin Agritech  vs.  ARDAGH METAL PACDL 0001

Origin Agritech

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Origin Agritech are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Origin Agritech may actually be approaching a critical reversion point that can send shares even higher in April 2025.

ARDAGH METAL PACDL

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ARDAGH METAL PACDL 0001 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ARDAGH METAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Origin Agritech and ARDAGH METAL

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

The idea behind Origin Agritech and ARDAGH METAL PACDL 0001 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..