Correlation Between Origin Agritech and Scotts Miracle
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Scotts Miracle 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 Scotts Miracle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Scotts Miracle Gro, you can compare the effects of market volatilities on Origin Agritech and Scotts Miracle 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 Scotts Miracle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Scotts Miracle.
Diversification Opportunities for Origin Agritech and Scotts Miracle
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Scotts is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Scotts Miracle Gro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scotts Miracle Gro 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 Scotts Miracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scotts Miracle Gro has no effect on the direction of Origin Agritech i.e., Origin Agritech and Scotts Miracle go up and down completely randomly.
Pair Corralation between Origin Agritech and Scotts Miracle
Given the investment horizon of 90 days Origin Agritech is expected to under-perform the Scotts Miracle. In addition to that, Origin Agritech is 1.51 times more volatile than Scotts Miracle Gro. It trades about -0.17 of its total potential returns per unit of risk. Scotts Miracle Gro is currently generating about 0.11 per unit of volatility. If you would invest 5,429 in Scotts Miracle Gro on March 31, 2025 and sell it today you would earn a total of 1,145 from holding Scotts Miracle Gro or generate 21.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Scotts Miracle Gro
Performance |
| Timeline |
| Origin Agritech |
| Scotts Miracle Gro |
Origin Agritech and Scotts Miracle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Scotts Miracle
The main advantage of trading using opposite Origin Agritech and Scotts Miracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Scotts Miracle 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 Scotts Miracle will offset losses from the drop in Scotts Miracle's long position.| Origin Agritech vs. Corteva | Origin Agritech vs. Scotts Miracle Gro | Origin Agritech vs. Yara International ASA | Origin Agritech vs. American Vanguard |
| Scotts Miracle vs. Corteva | Scotts Miracle vs. CF Industries Holdings | Scotts Miracle vs. American Vanguard | Scotts Miracle vs. Intrepid Potash |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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