Correlation Between Orion Engineered and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both Orion Engineered and Saker Aviation 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 Orion Engineered and Saker Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orion Engineered Carbons and Saker Aviation Services, you can compare the effects of market volatilities on Orion Engineered and Saker Aviation 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 Orion Engineered with a short position of Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orion Engineered and Saker Aviation.
Diversification Opportunities for Orion Engineered and Saker Aviation
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orion and Saker is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Orion Engineered Carbons and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services and Orion Engineered 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 Orion Engineered Carbons are associated (or correlated) with Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Orion Engineered i.e., Orion Engineered and Saker Aviation go up and down completely randomly.
Pair Corralation between Orion Engineered and Saker Aviation
Considering the 90-day investment horizon Orion Engineered is expected to generate 4.96 times less return on investment than Saker Aviation. But when comparing it to its historical volatility, Orion Engineered Carbons is 1.46 times less risky than Saker Aviation. It trades about 0.01 of its potential returns per unit of risk. Saker Aviation Services is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 525.00 in Saker Aviation Services on August 25, 2024 and sell it today you would earn a total of 235.00 from holding Saker Aviation Services or generate 44.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orion Engineered Carbons vs. Saker Aviation Services
Performance |
| Timeline |
| Orion Engineered Carbons |
| Saker Aviation Services |
Orion Engineered and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orion Engineered and Saker Aviation
The main advantage of trading using opposite Orion Engineered and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orion Engineered position performs unexpectedly, Saker Aviation 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 Saker Aviation will offset losses from the drop in Saker Aviation's long position.| Orion Engineered vs. Innospec | Orion Engineered vs. H B Fuller | Orion Engineered vs. Quaker Chemical | Orion Engineered vs. Minerals Technologies |
| Saker Aviation vs. Passur Aerospace | Saker Aviation vs. Table Trac | Saker Aviation vs. Optex Systems Holdings, |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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