Correlation Between Schweizerische Nationalbank and Orbital Energy

Can any of the company-specific risk be diversified away by investing in both Schweizerische Nationalbank and Orbital Energy 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 Schweizerische Nationalbank and Orbital Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Schweizerische Nationalbank and Orbital Energy Group, you can compare the effects of market volatilities on Schweizerische Nationalbank and Orbital Energy 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 Schweizerische Nationalbank with a short position of Orbital Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweizerische Nationalbank and Orbital Energy.

Diversification Opportunities for Schweizerische Nationalbank and Orbital Energy

0.0

Correlation Coefficient

Schweizerische Nationalbank  Orbital Energy

Pay attention - limited upside

The 3 months correlation between Schweizerische and Orbital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Schweizerische Nationalbank and Orbital Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbital Energy Group and Schweizerische Nationalbank 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 Schweizerische Nationalbank are associated (or correlated) with Orbital Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbital Energy Group has no effect on the direction of Schweizerische Nationalbank i.e., Schweizerische Nationalbank and Orbital Energy go up and down completely randomly.

Pair Corralation between Schweizerische Nationalbank and Orbital Energy

If you would invest  0.00  in Orbital Energy Group on February 28, 2024 and sell it today you would earn a total of  0.00  from holding Orbital Energy Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Schweizerische Nationalbank  vs.  Orbital Energy Group

Schweizerische Nationalbank

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Schweizerische Nationalbank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Schweizerische Nationalbank is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Orbital Energy Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Orbital Energy Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Orbital Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Schweizerische Nationalbank and Orbital Energy

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

The idea behind Schweizerische Nationalbank and Orbital Energy Group 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.

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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.