Correlation Between Orbit Technologies and Blender Financial

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

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

Diversification Opportunities for Orbit Technologies and Blender Financial

-0.74

Correlation Coefficient

Orbit Technologies  Blender Financial

Pay attention - limited upside

The 3 months correlation between Orbit and Blender is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Technologies and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and Orbit 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 Orbit Technologies are associated (or correlated) with Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of Orbit Technologies i.e., Orbit Technologies and Blender Financial go up and down completely randomly.

Pair Corralation between Orbit Technologies and Blender Financial

Assuming the 90 days trading horizon Orbit Technologies is expected to generate 0.61 times more return on investment than Blender Financial. However, Orbit Technologies is 1.64 times less risky than Blender Financial. It trades about 0.19 of its potential returns per unit of risk. Blender Financial Technologies is currently generating about -0.02 per unit of risk. If you would invest  208,527  in Orbit Technologies on September 29, 2024 and sell it today you would earn a total of  85,373  from holding Orbit Technologies or generate 40.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.98%
Values	Daily Returns

Orbit Technologies  vs.  Blender Financial Technologies

Orbit Technologies

Risk-Adjusted Performance

27 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Orbit Technologies are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Orbit Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Blender Financial

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Orbit Technologies and Blender Financial

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

The idea behind Orbit Technologies and Blender Financial Technologies 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.