Correlation Between Intrepid Potash and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Intrepid Potash 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 Intrepid Potash and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrepid Potash and Origin Agritech, you can compare the effects of market volatilities on Intrepid Potash 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 Intrepid Potash with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrepid Potash and Origin Agritech.
Diversification Opportunities for Intrepid Potash and Origin Agritech
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intrepid and Origin is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Potash and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and Intrepid Potash 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 Intrepid Potash 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 Intrepid Potash i.e., Intrepid Potash and Origin Agritech go up and down completely randomly.
Pair Corralation between Intrepid Potash and Origin Agritech
Considering the 90-day investment horizon Intrepid Potash is expected to under-perform the Origin Agritech. But the stock apears to be less risky and, when comparing its historical volatility, Intrepid Potash is 2.11 times less risky than Origin Agritech. The stock trades about -0.12 of its potential returns per unit of risk. The Origin Agritech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Origin Agritech on June 6, 2025 and sell it today you would earn a total of 3.00 from holding Origin Agritech or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intrepid Potash vs. Origin Agritech
Performance |
| Timeline |
| Intrepid Potash |
| Origin Agritech |
Intrepid Potash and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intrepid Potash and Origin Agritech
The main advantage of trading using opposite Intrepid Potash and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrepid Potash 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.| Intrepid Potash vs. CF Industries Holdings | Intrepid Potash vs. The Mosaic | Intrepid Potash vs. American Vanguard | Intrepid Potash vs. CVR Partners LP |
| Origin Agritech vs. KS AG DRC | Origin Agritech vs. Intrepid Potash | Origin Agritech vs. Enlightify | Origin Agritech vs. Bioceres Crop Solutions |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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