Correlation Between Orbit Technologies and Wesure Global
Can any of the company-specific risk be diversified away by investing in both Orbit Technologies and Wesure Global 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 Wesure Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbit Technologies and Wesure Global Tech, you can compare the effects of market volatilities on Orbit Technologies and Wesure Global 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 Wesure Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbit Technologies and Wesure Global.
Diversification Opportunities for Orbit Technologies and Wesure Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Orbit and Wesure is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Technologies and Wesure Global Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesure Global Tech 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 Wesure Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesure Global Tech has no effect on the direction of Orbit Technologies i.e., Orbit Technologies and Wesure Global go up and down completely randomly.
Pair Corralation between Orbit Technologies and Wesure Global
Assuming the 90 days trading horizon Orbit Technologies is expected to generate 3.01 times less return on investment than Wesure Global. But when comparing it to its historical volatility, Orbit Technologies is 1.38 times less risky than Wesure Global. It trades about 0.31 of its potential returns per unit of risk. Wesure Global Tech is currently generating about 0.67 of returns per unit of risk over similar time horizon. If you would invest 30,210 in Wesure Global Tech on August 30, 2024 and sell it today you would earn a total of 19,480 from holding Wesure Global Tech or generate 64.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbit Technologies vs. Wesure Global Tech
Performance |
| Timeline |
| Orbit Technologies |
| Wesure Global Tech |
Orbit Technologies and Wesure Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbit Technologies and Wesure Global
The main advantage of trading using opposite Orbit Technologies and Wesure Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbit Technologies position performs unexpectedly, Wesure Global 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 Wesure Global will offset losses from the drop in Wesure Global's long position.| Orbit Technologies vs. Ormat Technologies | Orbit Technologies vs. Multi Retail Group | Orbit Technologies vs. Nova | Orbit Technologies vs. B Communications |
| Wesure Global vs. Opal Balance | Wesure Global vs. B Communications | Wesure Global vs. Holmes Place International | Wesure Global vs. Nova |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |