Correlation Between SVFD Old and Origin Agritech

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

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

Diversification Opportunities for SVFD Old and Origin Agritech

0.0

Correlation Coefficient

SVFD Old  Origin Agritech

Pay attention - limited upside

The 3 months correlation between SVFD and Origin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVFD Old and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and SVFD Old 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 SVFD Old 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 SVFD Old i.e., SVFD Old and Origin Agritech go up and down completely randomly.

Pair Corralation between SVFD Old and Origin Agritech

If you would invest (100.00) in SVFD Old on December 2, 2024 and sell it today you would earn a total of  100.00  from holding SVFD Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SVFD Old  vs.  Origin Agritech

SVFD Old

Risk-Adjusted Performance

Very Weak

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

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 unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with SVFD Old and Origin Agritech

The main advantage of trading using opposite SVFD Old and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVFD Old 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 SVFD Old 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.