Correlation Between Kua Investments and Orbit Garant

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

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

Diversification Opportunities for Kua Investments and Orbit Garant

0.2

Correlation Coefficient

Kua Investments  Orbit Garant

Modest diversification

The 3 months correlation between Kua and Orbit is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kua Investments 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 Kua Investments 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 Kua Investments 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 Kua Investments i.e., Kua Investments and Orbit Garant go up and down completely randomly.

Pair Corralation between Kua Investments and Orbit Garant

Assuming the 90 days trading horizon Kua Investments is expected to under-perform the Orbit Garant. But the stock apears to be less risky and, when comparing its historical volatility, Kua Investments is 1.03 times less risky than Orbit Garant. The stock trades about -0.13 of its potential returns per unit of risk. The Orbit Garant Drilling is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  150.00  in Orbit Garant Drilling on April 23, 2025 and sell it today you would earn a total of  7.00  from holding Orbit Garant Drilling or generate 4.67% return on investment over 90 days.

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

Kua Investments  vs.  Orbit Garant Drilling

Kua Investments

Risk-Adjusted Performance

Very Weak

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

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 3 (%) 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 Kua Investments and Orbit Garant

The main advantage of trading using opposite Kua Investments and Orbit Garant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kua Investments 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 Kua Investments 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.