Correlation Between Orion Group and Cadeler AS

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

Diversification Opportunities for Orion Group and Cadeler AS

-0.86

Correlation Coefficient

Orion Group  Cadeler AS

Pay attention - limited upside

The 3 months correlation between Orion and Cadeler is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Orion Group Holdings and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS 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 Cadeler AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler AS has no effect on the direction of Orion Group i.e., Orion Group and Cadeler AS go up and down completely randomly.

Pair Corralation between Orion Group and Cadeler AS

Considering the 90-day investment horizon Orion Group Holdings is expected to generate 2.03 times more return on investment than Cadeler AS. However, Orion Group is 2.03 times more volatile than Cadeler AS. It trades about 0.07 of its potential returns per unit of risk. Cadeler AS is currently generating about 0.05 per unit of risk. If you would invest  255.00  in Orion Group Holdings on September 23, 2024 and sell it today you would earn a total of  513.00  from holding Orion Group Holdings or generate 201.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	50.5%
Values	Daily Returns

Orion Group Holdings  vs.  Cadeler AS

Orion Group Holdings

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Orion Group Holdings are ranked lower than 8 (%) 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.

Cadeler AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cadeler AS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Orion Group and Cadeler AS

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

The idea behind Orion Group Holdings and Cadeler AS 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.