Correlation Between Helios Fairfax and Orbit Garant

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

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

Diversification Opportunities for Helios Fairfax and Orbit Garant

0.25

Correlation Coefficient

Helios Fairfax  Orbit Garant

Modest diversification

The 3 months correlation between Helios and Orbit is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners 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 Helios Fairfax 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 Helios Fairfax Partners 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 Helios Fairfax i.e., Helios Fairfax and Orbit Garant go up and down completely randomly.

Pair Corralation between Helios Fairfax and Orbit Garant

Assuming the 90 days trading horizon Helios Fairfax is expected to generate 21.99 times less return on investment than Orbit Garant. But when comparing it to its historical volatility, Helios Fairfax Partners is 1.05 times less risky than Orbit Garant. It trades about 0.0 of its potential returns per unit of risk. Orbit Garant Drilling is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  137.00  in Orbit Garant Drilling on July 2, 2025 and sell it today you would earn a total of  36.00  from holding Orbit Garant Drilling or generate 26.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Helios Fairfax Partners  vs.  Orbit Garant Drilling

Helios Fairfax Partners

Risk-Adjusted Performance

Weakest

Over the last 90 days Helios Fairfax Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Helios Fairfax is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

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. In spite of very healthy fundamental indicators, Orbit Garant is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Helios Fairfax and Orbit Garant

The main advantage of trading using opposite Helios Fairfax and Orbit Garant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Fairfax 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.

The idea behind Helios Fairfax Partners and Orbit Garant Drilling 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.