Correlation Between Orior AG and Private Equity

Can any of the company-specific risk be diversified away by investing in both Orior AG and Private Equity 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 Orior AG and Private Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Orior AG and Private Equity Holding, you can compare the effects of market volatilities on Orior AG and Private Equity 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 Orior AG with a short position of Private Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orior AG and Private Equity.

Diversification Opportunities for Orior AG and Private Equity

0.35

Correlation Coefficient

Orior AG  Private Equity

Weak diversification

The 3 months correlation between Orior and Private is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Orior AG and Private Equity Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Private Equity Holding and Orior AG 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 Orior AG are associated (or correlated) with Private Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Private Equity Holding has no effect on the direction of Orior AG i.e., Orior AG and Private Equity go up and down completely randomly.

Pair Corralation between Orior AG and Private Equity

Assuming the 90 days trading horizon Orior AG is expected to under-perform the Private Equity. In addition to that, Orior AG is 1.46 times more volatile than Private Equity Holding. It trades about -0.17 of its total potential returns per unit of risk. Private Equity Holding is currently generating about 0.0 per unit of volatility. If you would invest  7,020  in Private Equity Holding on September 12, 2024 and sell it today you would lose (20.00) from holding Private Equity Holding or give up 0.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	82.81%
Values	Daily Returns

Orior AG  vs.  Private Equity Holding

Orior AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Orior AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Private Equity Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Private Equity Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Private Equity is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Orior AG and Private Equity

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

The idea behind Orior AG and Private Equity Holding 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.