Correlation Between Orion Group and Comfort Systems
Can any of the company-specific risk be diversified away by investing in both Orion Group and Comfort Systems 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 Group and Comfort Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orion Group Holdings and Comfort Systems USA, you can compare the effects of market volatilities on Orion Group and Comfort Systems 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 Group with a short position of Comfort Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orion Group and Comfort Systems.
Diversification Opportunities for Orion Group and Comfort Systems
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Orion and Comfort is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Orion Group Holdings and Comfort Systems USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comfort Systems USA and Orion Group 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 Group Holdings are associated (or correlated) with Comfort Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comfort Systems USA has no effect on the direction of Orion Group i.e., Orion Group and Comfort Systems go up and down completely randomly.
Pair Corralation between Orion Group and Comfort Systems
Considering the 90-day investment horizon Orion Group Holdings is expected to generate 0.7 times more return on investment than Comfort Systems. However, Orion Group Holdings is 1.43 times less risky than Comfort Systems. It trades about 0.18 of its potential returns per unit of risk. Comfort Systems USA is currently generating about 0.07 per unit of risk. If you would invest 713.00 in Orion Group Holdings on November 9, 2024 and sell it today you would earn a total of 110.00 from holding Orion Group Holdings or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orion Group Holdings vs. Comfort Systems USA
Performance |
| Timeline |
| Orion Group Holdings |
| Comfort Systems USA |
Orion Group and Comfort Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orion Group and Comfort Systems
The main advantage of trading using opposite Orion Group and Comfort Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orion Group position performs unexpectedly, Comfort Systems 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 Comfort Systems will offset losses from the drop in Comfort Systems' long position.| Orion Group vs. MYR Group | Orion Group vs. Granite Construction Incorporated | Orion Group vs. Construction Partners | Orion Group vs. Great Lakes Dredge |
| Comfort Systems vs. MYR Group | Comfort Systems vs. Granite Construction Incorporated | Comfort Systems vs. Dycom Industries | Comfort Systems vs. MasTec Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |