Correlation Between Benson Hill, and Origin Agritech

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

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

Diversification Opportunities for Benson Hill, and Origin Agritech

0.38

Correlation Coefficient

Benson Hill,  Origin Agritech

Weak diversification

The 3 months correlation between Benson and Origin is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Benson Hill, Common and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Benson Hill, 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 Benson Hill, Common 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 Benson Hill, i.e., Benson Hill, and Origin Agritech go up and down completely randomly.

Pair Corralation between Benson Hill, and Origin Agritech

Given the investment horizon of 90 days Benson Hill, Common is expected to under-perform the Origin Agritech. In addition to that, Benson Hill, is 3.81 times more volatile than Origin Agritech. It trades about -0.13 of its total potential returns per unit of risk. Origin Agritech is currently generating about 0.0 per unit of volatility. If you would invest  210.00  in Origin Agritech on December 28, 2024 and sell it today you would lose (18.00) from holding Origin Agritech or give up 8.57% of portfolio value over 90 days.

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

Benson Hill, Common  vs.  Origin Agritech

Benson Hill, Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Benson Hill, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Origin Agritech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Origin Agritech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Origin Agritech is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Benson Hill, and Origin Agritech

The main advantage of trading using opposite Benson Hill, and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benson Hill, 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.

The idea behind Benson Hill, Common and Origin Agritech 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.