Correlation Between Foran Mining and Orbit Garant

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Foran Mining and Orbit Garant 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 Foran Mining and Orbit Garant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foran Mining and Orbit Garant Drilling, you can compare the effects of market volatilities on Foran Mining and Orbit Garant 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 Foran Mining with a short position of Orbit Garant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foran Mining and Orbit Garant.

Diversification Opportunities for Foran Mining and Orbit Garant

-0.41
  Correlation Coefficient

Very good diversification

The 3 months correlation between Foran and Orbit is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Foran Mining and Orbit Garant Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbit Garant Drilling and Foran Mining 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 Foran Mining are associated (or correlated) with Orbit Garant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbit Garant Drilling has no effect on the direction of Foran Mining i.e., Foran Mining and Orbit Garant go up and down completely randomly.

Pair Corralation between Foran Mining and Orbit Garant

Assuming the 90 days trading horizon Foran Mining is expected to under-perform the Orbit Garant. But the stock apears to be less risky and, when comparing its historical volatility, Foran Mining is 2.37 times less risky than Orbit Garant. The stock trades about -0.09 of its potential returns per unit of risk. The Orbit Garant Drilling is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  81.00  in Orbit Garant Drilling on October 25, 2024 and sell it today you would earn a total of  12.00  from holding Orbit Garant Drilling or generate 14.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Foran Mining  vs.  Orbit Garant Drilling

 Performance 
       Timeline  
Foran Mining 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Foran Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Orbit Garant Drilling 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Orbit Garant Drilling are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Orbit Garant displayed solid returns over the last few months and may actually be approaching a breakup point.

Foran Mining and Orbit Garant Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Foran Mining and Orbit Garant

The main advantage of trading using opposite Foran Mining and Orbit Garant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foran Mining position performs unexpectedly, Orbit Garant 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 Orbit Garant will offset losses from the drop in Orbit Garant's long position.
The idea behind Foran Mining and Orbit Garant Drilling pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios