Correlation Between Argan and Orion Group
Can any of the company-specific risk be diversified away by investing in both Argan and Orion Group 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 Argan and Orion Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argan Inc and Orion Group Holdings, you can compare the effects of market volatilities on Argan and Orion Group 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 Argan with a short position of Orion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argan and Orion Group.
Diversification Opportunities for Argan and Orion Group
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Argan and Orion is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Argan Inc and Orion Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orion Group Holdings and Argan 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 Argan Inc are associated (or correlated) with Orion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orion Group Holdings has no effect on the direction of Argan i.e., Argan and Orion Group go up and down completely randomly.
Pair Corralation between Argan and Orion Group
Considering the 90-day investment horizon Argan Inc is expected to under-perform the Orion Group. In addition to that, Argan is 1.09 times more volatile than Orion Group Holdings. It trades about -0.01 of its total potential returns per unit of risk. Orion Group Holdings is currently generating about 0.09 per unit of volatility. If you would invest 741.00 in Orion Group Holdings on November 3, 2024 and sell it today you would earn a total of 47.00 from holding Orion Group Holdings or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argan Inc vs. Orion Group Holdings
Performance |
| Timeline |
| Argan Inc |
| Orion Group Holdings |
Argan and Orion Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argan and Orion Group
The main advantage of trading using opposite Argan and Orion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argan position performs unexpectedly, Orion Group 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 Orion Group will offset losses from the drop in Orion Group's long position.| Argan vs. Arcosa Inc | Argan vs. Construction Partners | Argan vs. Topbuild Corp | Argan vs. Comfort Systems USA |
| Orion Group vs. MYR Group | Orion Group vs. Granite Construction Incorporated | Orion Group vs. Construction Partners | Orion Group vs. Great Lakes Dredge |
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.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |