Correlation Between Orbit International and Jewett Cameron

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

By analyzing existing cross correlation between Orbit International and Jewett Cameron Trading, you can compare the effects of market volatilities on Orbit International and Jewett Cameron 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 International with a short position of Jewett Cameron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbit International and Jewett Cameron.

Diversification Opportunities for Orbit International and Jewett Cameron

0.72

Correlation Coefficient

Orbit International  Jewett Cameron

Poor diversification

The 3 months correlation between Orbit and Jewett is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Orbit International and Jewett Cameron Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jewett Cameron Trading and Orbit International 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 International are associated (or correlated) with Jewett Cameron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jewett Cameron Trading has no effect on the direction of Orbit International i.e., Orbit International and Jewett Cameron go up and down completely randomly.

Pair Corralation between Orbit International and Jewett Cameron

If you would invest  463.00  in Jewett Cameron Trading on September 14, 2024 and sell it today you would earn a total of  26.00  from holding Jewett Cameron Trading or generate 5.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	5.56%
Values	Daily Returns

Orbit International  vs.  Jewett Cameron Trading

Orbit International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Orbit International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Orbit International is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Jewett Cameron Trading

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Jewett Cameron Trading has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unfluctuating fundamental indicators, Jewett Cameron reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Orbit International and Jewett Cameron

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

The idea behind Orbit International and Jewett Cameron Trading 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.