Correlation Between Orbit Technologies and Shagrir Group
Can any of the company-specific risk be diversified away by investing in both Orbit Technologies and Shagrir 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 Orbit Technologies and Shagrir Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbit Technologies and Shagrir Group Vehicle, you can compare the effects of market volatilities on Orbit Technologies and Shagrir 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 Orbit Technologies with a short position of Shagrir Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbit Technologies and Shagrir Group.
Diversification Opportunities for Orbit Technologies and Shagrir Group
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Orbit and Shagrir is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Technologies and Shagrir Group Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shagrir Group Vehicle and Orbit Technologies 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 Orbit Technologies are associated (or correlated) with Shagrir Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shagrir Group Vehicle has no effect on the direction of Orbit Technologies i.e., Orbit Technologies and Shagrir Group go up and down completely randomly.
Pair Corralation between Orbit Technologies and Shagrir Group
Assuming the 90 days trading horizon Orbit Technologies is expected to generate 0.79 times more return on investment than Shagrir Group. However, Orbit Technologies is 1.26 times less risky than Shagrir Group. It trades about 0.3 of its potential returns per unit of risk. Shagrir Group Vehicle is currently generating about 0.11 per unit of risk. If you would invest 256,600 in Orbit Technologies on September 4, 2024 and sell it today you would earn a total of 30,400 from holding Orbit Technologies or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbit Technologies vs. Shagrir Group Vehicle
Performance |
| Timeline |
| Orbit Technologies |
| Shagrir Group Vehicle |
Orbit Technologies and Shagrir Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbit Technologies and Shagrir Group
The main advantage of trading using opposite Orbit Technologies and Shagrir Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbit Technologies position performs unexpectedly, Shagrir 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 Shagrir Group will offset losses from the drop in Shagrir Group's long position.| Orbit Technologies vs. EN Shoham Business | Orbit Technologies vs. Accel Solutions Group | Orbit Technologies vs. Mivtach Shamir | Orbit Technologies vs. Rani Zim Shopping |
| Shagrir Group vs. EN Shoham Business | Shagrir Group vs. Accel Solutions Group | Shagrir Group vs. Mivtach Shamir | Shagrir Group vs. Rani Zim Shopping |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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