Correlation Between Maple Leaf and Orbit Garant
Can any of the company-specific risk be diversified away by investing in both Maple Leaf 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 Maple Leaf and Orbit Garant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Foods and Orbit Garant Drilling, you can compare the effects of market volatilities on Maple Leaf 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 Maple Leaf with a short position of Orbit Garant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Orbit Garant.
Diversification Opportunities for Maple Leaf and Orbit Garant
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maple and Orbit is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods 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 Maple Leaf 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 Maple Leaf Foods 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 Maple Leaf i.e., Maple Leaf and Orbit Garant go up and down completely randomly.
Pair Corralation between Maple Leaf and Orbit Garant
Assuming the 90 days trading horizon Maple Leaf Foods is expected to generate 0.4 times more return on investment than Orbit Garant. However, Maple Leaf Foods is 2.49 times less risky than Orbit Garant. It trades about 0.28 of its potential returns per unit of risk. Orbit Garant Drilling is currently generating about 0.04 per unit of risk. If you would invest 2,478 in Maple Leaf Foods on April 24, 2025 and sell it today you would earn a total of 554.00 from holding Maple Leaf Foods or generate 22.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Maple Leaf Foods vs. Orbit Garant Drilling
Performance |
Timeline |
Maple Leaf Foods |
Orbit Garant Drilling |
Maple Leaf and Orbit Garant Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maple Leaf and Orbit Garant
The main advantage of trading using opposite Maple Leaf and Orbit Garant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf 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.Maple Leaf vs. Saputo Inc | Maple Leaf vs. George Weston Limited | Maple Leaf vs. Empire Company Limited | Maple Leaf vs. Premium Brands Holdings |
Orbit Garant vs. Foraco International SA | Orbit Garant vs. Geodrill Limited | Orbit Garant vs. Major Drilling Group | Orbit Garant vs. Mccoy Global |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |