Correlation Between Orion Group and Ming Shing
Can any of the company-specific risk be diversified away by investing in both Orion Group and Ming Shing 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 Ming Shing 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 Ming Shing Group, you can compare the effects of market volatilities on Orion Group and Ming Shing 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 Ming Shing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orion Group and Ming Shing.
Diversification Opportunities for Orion Group and Ming Shing
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orion and Ming is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Orion Group Holdings and Ming Shing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Shing Group 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 Ming Shing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Shing Group has no effect on the direction of Orion Group i.e., Orion Group and Ming Shing go up and down completely randomly.
Pair Corralation between Orion Group and Ming Shing
Considering the 90-day investment horizon Orion Group Holdings is expected to under-perform the Ming Shing. But the stock apears to be less risky and, when comparing its historical volatility, Orion Group Holdings is 4.73 times less risky than Ming Shing. The stock trades about -0.38 of its potential returns per unit of risk. The Ming Shing Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 584.00 in Ming Shing Group on October 15, 2024 and sell it today you would earn a total of 135.00 from holding Ming Shing Group or generate 23.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orion Group Holdings vs. Ming Shing Group
Performance |
| Timeline |
| Orion Group Holdings |
| Ming Shing Group |
Orion Group and Ming Shing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orion Group and Ming Shing
The main advantage of trading using opposite Orion Group and Ming Shing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orion Group position performs unexpectedly, Ming Shing 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 Ming Shing will offset losses from the drop in Ming Shing's long position.| Orion Group vs. MYR Group | Orion Group vs. Granite Construction Incorporated | Orion Group vs. Construction Partners | Orion Group vs. Great Lakes Dredge |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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