Correlation Between Exchange Traded and ORFN

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

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

Diversification Opportunities for Exchange Traded and ORFN

0.0

Correlation Coefficient

Exchange Traded  ORFN

Pay attention - limited upside

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

Pair Corralation between Exchange Traded and ORFN

If you would invest (100.00) in ORFN on August 4, 2025 and sell it today you would earn a total of  100.00  from holding ORFN or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Exchange Traded Concepts  vs.  ORFN

Exchange Traded Concepts

Risk-Adjusted Performance

Weakest

Over the last 90 days Exchange Traded Concepts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Exchange Traded is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

ORFN

Risk-Adjusted Performance

Weakest

Over the last 90 days ORFN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, ORFN is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Exchange Traded and ORFN

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

The idea behind Exchange Traded Concepts and ORFN 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.