Correlation Between Capstone Infrastructure and Orbit Garant

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

By analyzing existing cross correlation between Capstone Infrastructure Corp and Orbit Garant Drilling, you can compare the effects of market volatilities on Capstone Infrastructure and Orbit Garant 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 Capstone Infrastructure with a short position of Orbit Garant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Infrastructure and Orbit Garant.

Diversification Opportunities for Capstone Infrastructure and Orbit Garant

0.48

Correlation Coefficient

Capstone Infrastructure  Orbit Garant

Very weak diversification

The 3 months correlation between Capstone and Orbit is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Infrastructure Corp and Orbit Garant Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbit Garant Drilling and Capstone Infrastructure 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 Capstone Infrastructure Corp are associated (or correlated) with Orbit Garant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbit Garant Drilling has no effect on the direction of Capstone Infrastructure i.e., Capstone Infrastructure and Orbit Garant go up and down completely randomly.

Pair Corralation between Capstone Infrastructure and Orbit Garant

Assuming the 90 days trading horizon Capstone Infrastructure Corp is expected to generate 0.48 times more return on investment than Orbit Garant. However, Capstone Infrastructure Corp is 2.09 times less risky than Orbit Garant. It trades about 0.12 of its potential returns per unit of risk. Orbit Garant Drilling is currently generating about 0.06 per unit of risk. If you would invest  1,516  in Capstone Infrastructure Corp on April 20, 2025 and sell it today you would earn a total of  159.00  from holding Capstone Infrastructure Corp or generate 10.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Capstone Infrastructure Corp  vs.  Orbit Garant Drilling

Capstone Infrastructure

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Capstone Infrastructure Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Capstone Infrastructure may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Orbit Garant Drilling

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Orbit Garant Drilling are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Orbit Garant may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Capstone Infrastructure and Orbit Garant

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

The idea behind Capstone Infrastructure Corp and Orbit Garant Drilling 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.