Correlation Between Tedea Technological and Orbit Technologies

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

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

Diversification Opportunities for Tedea Technological and Orbit Technologies

-0.79

Correlation Coefficient

Tedea Technological  Orbit Technologies

Pay attention - limited upside

The 3 months correlation between Tedea and Orbit is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tedea Technological Developmen and Orbit Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbit Technologies and Tedea Technological 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 Tedea Technological Development are associated (or correlated) with Orbit Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbit Technologies has no effect on the direction of Tedea Technological i.e., Tedea Technological and Orbit Technologies go up and down completely randomly.

Pair Corralation between Tedea Technological and Orbit Technologies

Assuming the 90 days trading horizon Tedea Technological Development is expected to under-perform the Orbit Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Tedea Technological Development is 1.48 times less risky than Orbit Technologies. The stock trades about -0.27 of its potential returns per unit of risk. The Orbit Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  291,000  in Orbit Technologies on December 30, 2024 and sell it today you would earn a total of  32,000  from holding Orbit Technologies or generate 11.0% return on investment over 90 days.

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

Tedea Technological Developmen  vs.  Orbit Technologies

Tedea Technological

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tedea Technological Development has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Orbit Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Orbit Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Orbit Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tedea Technological and Orbit Technologies

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

The idea behind Tedea Technological Development and Orbit 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.

Check out your portfolio center.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.