Correlation Between Orion Group and ACS Actividades

Can any of the company-specific risk be diversified away by investing in both Orion Group and ACS Actividades 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 ACS Actividades 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 ACS Actividades de, you can compare the effects of market volatilities on Orion Group and ACS Actividades 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 ACS Actividades. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orion Group and ACS Actividades.

Diversification Opportunities for Orion Group and ACS Actividades

-0.72

Correlation Coefficient

Orion Group  ACS Actividades

Pay attention - limited upside

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

Pair Corralation between Orion Group and ACS Actividades

Considering the 90-day investment horizon Orion Group Holdings is expected to under-perform the ACS Actividades. In addition to that, Orion Group is 1.96 times more volatile than ACS Actividades de. It trades about -0.08 of its total potential returns per unit of risk. ACS Actividades de is currently generating about 0.18 per unit of volatility. If you would invest  4,725  in ACS Actividades de on December 27, 2024 and sell it today you would earn a total of  1,137  from holding ACS Actividades de or generate 24.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	86.67%
Values	Daily Returns

Orion Group Holdings  vs.  ACS Actividades de

Orion Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Orion Group Holdings 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 Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

ACS Actividades de

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ACS Actividades de are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ACS Actividades reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Orion Group and ACS Actividades

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

The idea behind Orion Group Holdings and ACS Actividades de 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.