Correlation Between Orbit Garant and Micron Technology

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

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

Diversification Opportunities for Orbit Garant and Micron Technology

-0.53

Correlation Coefficient

Orbit Garant  Micron Technology

Excellent diversification

The 3 months correlation between Orbit and Micron is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Garant Drilling and Micron Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micron Technology and Orbit Garant 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 Orbit Garant Drilling are associated (or correlated) with Micron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micron Technology has no effect on the direction of Orbit Garant i.e., Orbit Garant and Micron Technology go up and down completely randomly.

Pair Corralation between Orbit Garant and Micron Technology

Assuming the 90 days trading horizon Orbit Garant Drilling is expected to under-perform the Micron Technology. In addition to that, Orbit Garant is 1.09 times more volatile than Micron Technology. It trades about -0.03 of its total potential returns per unit of risk. Micron Technology is currently generating about 0.2 per unit of volatility. If you would invest  4,421  in Micron Technology on October 8, 2025 and sell it today you would earn a total of  2,544  from holding Micron Technology or generate 57.54% return on investment over 90 days.

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

Orbit Garant Drilling  vs.  Micron Technology

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 latest abnormal performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Micron Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Micron Technology are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Micron Technology displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Orbit Garant and Micron Technology

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

The idea behind Orbit Garant Drilling and Micron Technology 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.