Correlation Between Orion Group and JNS Holdings

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

Diversification Opportunities for Orion Group and JNS Holdings

0.63

Correlation Coefficient

Orion Group  JNS Holdings

Poor diversification

The 3 months correlation between Orion and JNS is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Orion Group Holdings and JNS Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNS Holdings Corp 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 JNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNS Holdings Corp has no effect on the direction of Orion Group i.e., Orion Group and JNS Holdings go up and down completely randomly.

Pair Corralation between Orion Group and JNS Holdings

Considering the 90-day investment horizon Orion Group Holdings is expected to under-perform the JNS Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Orion Group Holdings is 1.76 times less risky than JNS Holdings. The stock trades about -0.09 of its potential returns per unit of risk. The JNS Holdings Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  0.25  in JNS Holdings Corp on December 26, 2024 and sell it today you would lose (0.07) from holding JNS Holdings Corp or give up 28.0% of portfolio value over 90 days.

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

Orion Group Holdings  vs.  JNS Holdings Corp

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.

JNS Holdings Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days JNS Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Orion Group and JNS Holdings

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

The idea behind Orion Group Holdings and JNS Holdings Corp 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 CEOs Directory module to screen CEOs from public companies around the world.