Correlation Between Nabors Industries and Orbit Garant
Can any of the company-specific risk be diversified away by investing in both Nabors Industries and Orbit Garant 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 Nabors Industries and Orbit Garant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nabors Industries and Orbit Garant Drilling, you can compare the effects of market volatilities on Nabors Industries and Orbit Garant 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 Nabors Industries with a short position of Orbit Garant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and Orbit Garant.
Diversification Opportunities for Nabors Industries and Orbit Garant
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nabors and Orbit is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries and Orbit Garant Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbit Garant Drilling and Nabors Industries 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 Nabors Industries are associated (or correlated) with Orbit Garant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbit Garant Drilling has no effect on the direction of Nabors Industries i.e., Nabors Industries and Orbit Garant go up and down completely randomly.
Pair Corralation between Nabors Industries and Orbit Garant
Considering the 90-day investment horizon Nabors Industries is expected to under-perform the Orbit Garant. But the stock apears to be less risky and, when comparing its historical volatility, Nabors Industries is 1.32 times less risky than Orbit Garant. The stock trades about -0.02 of its potential returns per unit of risk. The Orbit Garant Drilling is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 42.00 in Orbit Garant Drilling on November 9, 2024 and sell it today you would earn a total of 25.00 from holding Orbit Garant Drilling or generate 59.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nabors Industries vs. Orbit Garant Drilling
Performance |
| Timeline |
| Nabors Industries |
| Orbit Garant Drilling |
Nabors Industries and Orbit Garant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nabors Industries and Orbit Garant
The main advantage of trading using opposite Nabors Industries and Orbit Garant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nabors Industries position performs unexpectedly, Orbit Garant 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 Orbit Garant will offset losses from the drop in Orbit Garant's long position.| Nabors Industries vs. Helmerich and Payne | Nabors Industries vs. Precision Drilling | Nabors Industries vs. Seadrill Limited | Nabors Industries vs. Borr Drilling |
| Orbit Garant vs. Great Western Minerals | Orbit Garant vs. StrikePoint Gold | Orbit Garant vs. Silver Elephant Mining | Orbit Garant vs. Eskay Mining Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |