Correlation Between Orbit Technologies and Altshuler Shaham

Can any of the company-specific risk be diversified away by investing in both Orbit Technologies and Altshuler Shaham 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 Altshuler Shaham into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Orbit Technologies and Altshuler Shaham Financial, you can compare the effects of market volatilities on Orbit Technologies and Altshuler Shaham 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 Altshuler Shaham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbit Technologies and Altshuler Shaham.

Diversification Opportunities for Orbit Technologies and Altshuler Shaham

0.49

Correlation Coefficient

Orbit Technologies  Altshuler Shaham

Very weak diversification

The 3 months correlation between Orbit and Altshuler is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Technologies and Altshuler Shaham Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altshuler Shaham Fin 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 Altshuler Shaham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altshuler Shaham Fin has no effect on the direction of Orbit Technologies i.e., Orbit Technologies and Altshuler Shaham go up and down completely randomly.

Pair Corralation between Orbit Technologies and Altshuler Shaham

Assuming the 90 days trading horizon Orbit Technologies is expected to generate 0.95 times more return on investment than Altshuler Shaham. However, Orbit Technologies is 1.06 times less risky than Altshuler Shaham. It trades about 0.08 of its potential returns per unit of risk. Altshuler Shaham Financial is currently generating about 0.01 per unit of risk. If you would invest  165,066  in Orbit Technologies on October 26, 2024 and sell it today you would earn a total of  146,034  from holding Orbit Technologies or generate 88.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Orbit Technologies  vs.  Altshuler Shaham Financial

Orbit Technologies

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Orbit Technologies are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Orbit Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Altshuler Shaham Fin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altshuler Shaham Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Altshuler Shaham is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Orbit Technologies and Altshuler Shaham

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

The idea behind Orbit Technologies and Altshuler Shaham Financial 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.

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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 Managers module to screen money managers from public funds and ETFs managed around the world.