Correlation Between Orexo AB and SIGA Technologies

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

By analyzing existing cross correlation between Orexo AB and SIGA Technologies, you can compare the effects of market volatilities on Orexo AB and SIGA Technologies 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 Orexo AB with a short position of SIGA Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orexo AB and SIGA Technologies.

Diversification Opportunities for Orexo AB and SIGA Technologies

0.0

Correlation Coefficient

Orexo AB  SIGA Technologies

Pay attention - limited upside

The 3 months correlation between Orexo and SIGA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Orexo AB and SIGA Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIGA Technologies and Orexo AB 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 Orexo AB are associated (or correlated) with SIGA Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIGA Technologies has no effect on the direction of Orexo AB i.e., Orexo AB and SIGA Technologies go up and down completely randomly.

Pair Corralation between Orexo AB and SIGA Technologies

If you would invest  108.00  in Orexo AB on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Orexo AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Orexo AB  vs.  SIGA Technologies

Orexo AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Orexo AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Orexo AB is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SIGA Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days SIGA Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, SIGA Technologies is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Orexo AB and SIGA Technologies

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

The idea behind Orexo AB and SIGA Technologies 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.