Correlation Between Hudson Technologies and Orbit Garant

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

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

Diversification Opportunities for Hudson Technologies and Orbit Garant

0.58

Correlation Coefficient

Hudson Technologies  Orbit Garant

Very weak diversification

The 3 months correlation between Hudson and Orbit is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Technologies 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 Hudson Technologies 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 Hudson Technologies 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 Hudson Technologies i.e., Hudson Technologies and Orbit Garant go up and down completely randomly.

Pair Corralation between Hudson Technologies and Orbit Garant

Given the investment horizon of 90 days Hudson Technologies is expected to under-perform the Orbit Garant. But the stock apears to be less risky and, when comparing its historical volatility, Hudson Technologies is 1.74 times less risky than Orbit Garant. The stock trades about -0.01 of its potential returns per unit of risk. The Orbit Garant Drilling is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  83.00  in Orbit Garant Drilling on March 4, 2025 and sell it today you would earn a total of  19.00  from holding Orbit Garant Drilling or generate 22.89% return on investment over 90 days.

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

Hudson Technologies  vs.  Orbit Garant Drilling

Hudson Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hudson Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Hudson Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Orbit Garant Drilling

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Orbit Garant Drilling are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Orbit Garant reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hudson Technologies and Orbit Garant

The main advantage of trading using opposite Hudson Technologies and Orbit Garant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Technologies 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 Hudson Technologies 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.