Correlation Between Orbit Garant and Core Laboratories

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

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

Diversification Opportunities for Orbit Garant and Core Laboratories

-0.38

Correlation Coefficient

Orbit Garant  Core Laboratories

Very good diversification

The 3 months correlation between Orbit and Core is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Garant Drilling and Core Laboratories NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Laboratories and Orbit Garant 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 Orbit Garant Drilling are associated (or correlated) with Core Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Laboratories has no effect on the direction of Orbit Garant i.e., Orbit Garant and Core Laboratories go up and down completely randomly.

Pair Corralation between Orbit Garant and Core Laboratories

Assuming the 90 days horizon Orbit Garant Drilling is expected to under-perform the Core Laboratories. But the pink sheet apears to be less risky and, when comparing its historical volatility, Orbit Garant Drilling is 1.33 times less risky than Core Laboratories. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Core Laboratories NV is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,150  in Core Laboratories NV on August 29, 2025 and sell it today you would earn a total of  354.00  from holding Core Laboratories NV or generate 30.78% return on investment over 90 days.

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

Orbit Garant Drilling  vs.  Core Laboratories NV

Orbit Garant Drilling

Risk-Adjusted Performance

Weakest

Over the last 90 days Orbit Garant Drilling has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Core Laboratories

Risk-Adjusted Performance

Fair

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

Pair Trading with Orbit Garant and Core Laboratories

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

The idea behind Orbit Garant Drilling and Core Laboratories NV 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.