Correlation Between Origin Agritech and Unipol Gruppo
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Unipol Gruppo 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 Unipol Gruppo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Unipol Gruppo Finanziario, you can compare the effects of market volatilities on Origin Agritech and Unipol Gruppo 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 Unipol Gruppo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Unipol Gruppo.
Diversification Opportunities for Origin Agritech and Unipol Gruppo
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Unipol is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Unipol Gruppo Finanziario in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unipol Gruppo Finanziario 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 Unipol Gruppo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unipol Gruppo Finanziario has no effect on the direction of Origin Agritech i.e., Origin Agritech and Unipol Gruppo go up and down completely randomly.
Pair Corralation between Origin Agritech and Unipol Gruppo
Assuming the 90 days trading horizon Origin Agritech is expected to under-perform the Unipol Gruppo. In addition to that, Origin Agritech is 2.7 times more volatile than Unipol Gruppo Finanziario. It trades about -0.09 of its total potential returns per unit of risk. Unipol Gruppo Finanziario is currently generating about 0.06 per unit of volatility. If you would invest 1,142 in Unipol Gruppo Finanziario on October 6, 2024 and sell it today you would earn a total of 37.00 from holding Unipol Gruppo Finanziario or generate 3.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.5% |
Values | Daily Returns |
Origin Agritech vs. Unipol Gruppo Finanziario
Performance |
Timeline |
Origin Agritech |
Unipol Gruppo Finanziario |
Origin Agritech and Unipol Gruppo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Origin Agritech and Unipol Gruppo
The main advantage of trading using opposite Origin Agritech and Unipol Gruppo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Unipol Gruppo 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 Unipol Gruppo will offset losses from the drop in Unipol Gruppo's long position.Origin Agritech vs. 24SEVENOFFICE GROUP AB | Origin Agritech vs. DFS Furniture PLC | Origin Agritech vs. UNITED UTILITIES GR | Origin Agritech vs. The Home Depot |
Unipol Gruppo vs. PennantPark Investment | Unipol Gruppo vs. FIRST SAVINGS FINL | Unipol Gruppo vs. Peijia Medical Limited | Unipol Gruppo vs. Chuangs China Investments |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Bonds Directory Find actively traded corporate debentures issued by US companies |