Correlation Between Junee Limited and Orion Group

Can any of the company-specific risk be diversified away by investing in both Junee Limited and Orion 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 Junee Limited and Orion Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Junee Limited Ordinary and Orion Group Holdings, you can compare the effects of market volatilities on Junee Limited and Orion 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 Junee Limited with a short position of Orion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Junee Limited and Orion Group.

Diversification Opportunities for Junee Limited and Orion Group

-0.46

Correlation Coefficient

Junee Limited  Orion Group

Very good diversification

The 3 months correlation between Junee and Orion is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Junee Limited Ordinary and Orion Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orion Group Holdings and Junee Limited 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 Junee Limited Ordinary are associated (or correlated) with Orion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orion Group Holdings has no effect on the direction of Junee Limited i.e., Junee Limited and Orion Group go up and down completely randomly.

Pair Corralation between Junee Limited and Orion Group

Given the investment horizon of 90 days Junee Limited is expected to generate 4.95 times less return on investment than Orion Group. In addition to that, Junee Limited is 1.09 times more volatile than Orion Group Holdings. It trades about 0.01 of its total potential returns per unit of risk. Orion Group Holdings is currently generating about 0.07 per unit of volatility. If you would invest  292.00  in Orion Group Holdings on October 3, 2024 and sell it today you would earn a total of  459.00  from holding Orion Group Holdings or generate 157.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	36.16%
Values	Daily Returns

Junee Limited Ordinary  vs.  Orion Group Holdings

Junee Limited Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Junee Limited Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Etf's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Orion Group Holdings

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Orion Group Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Orion Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Junee Limited and Orion Group

The main advantage of trading using opposite Junee Limited and Orion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Junee Limited position performs unexpectedly, Orion 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 Orion Group will offset losses from the drop in Orion Group's long position.

The idea behind Junee Limited Ordinary and Orion Group Holdings 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.