Correlation Between IBC Advanced and Orbit International

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

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

Diversification Opportunities for IBC Advanced and Orbit International

0.88

Correlation Coefficient

IBC Advanced  Orbit International

Very poor diversification

The 3 months correlation between IBC and Orbit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding IBC Advanced Alloys and Orbit International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbit International and IBC Advanced 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 IBC Advanced Alloys are associated (or correlated) with Orbit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbit International has no effect on the direction of IBC Advanced i.e., IBC Advanced and Orbit International go up and down completely randomly.

Pair Corralation between IBC Advanced and Orbit International

Assuming the 90 days horizon IBC Advanced Alloys is expected to generate 1.47 times more return on investment than Orbit International. However, IBC Advanced is 1.47 times more volatile than Orbit International. It trades about 0.2 of its potential returns per unit of risk. Orbit International is currently generating about 0.13 per unit of risk. If you would invest  4.00  in IBC Advanced Alloys on August 24, 2025 and sell it today you would earn a total of  7.00  from holding IBC Advanced Alloys or generate 175.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	93.75%
Values	Daily Returns

IBC Advanced Alloys  vs.  Orbit International

IBC Advanced Alloys

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IBC Advanced Alloys are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, IBC Advanced reported solid returns over the last few months and may actually be approaching a breakup point.

Orbit International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Orbit International are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting fundamental drivers, Orbit International unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IBC Advanced and Orbit International

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

The idea behind IBC Advanced Alloys and Orbit International 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.