Correlation Between WK Kellogg and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both WK Kellogg 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 WK Kellogg and Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WK Kellogg Co and Origin Agritech, you can compare the effects of market volatilities on WK Kellogg 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 WK Kellogg with a short position of Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of WK Kellogg and Origin Agritech.
Diversification Opportunities for WK Kellogg and Origin Agritech
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KLG and Origin is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding WK Kellogg Co and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech and WK Kellogg 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 WK Kellogg Co 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 WK Kellogg i.e., WK Kellogg and Origin Agritech go up and down completely randomly.
Pair Corralation between WK Kellogg and Origin Agritech
Considering the 90-day investment horizon WK Kellogg Co is expected to generate 0.63 times more return on investment than Origin Agritech. However, WK Kellogg Co is 1.58 times less risky than Origin Agritech. It trades about 0.16 of its potential returns per unit of risk. Origin Agritech is currently generating about 0.03 per unit of risk. If you would invest 1,591 in WK Kellogg Co on June 10, 2025 and sell it today you would earn a total of 706.00 from holding WK Kellogg Co or generate 44.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WK Kellogg Co vs. Origin Agritech
Performance |
| Timeline |
| WK Kellogg |
| Origin Agritech |
WK Kellogg and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WK Kellogg and Origin Agritech
The main advantage of trading using opposite WK Kellogg and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WK Kellogg 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.| WK Kellogg vs. Coeur Mining | WK Kellogg vs. Belden Inc | WK Kellogg vs. Seche Environnement SA | WK Kellogg vs. Contango ORE |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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