Correlation Between Technology Select and Orca Energy

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

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

Diversification Opportunities for Technology Select and Orca Energy

0.0

Correlation Coefficient

Technology Select  Orca Energy

Pay attention - limited upside

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

Pair Corralation between Technology Select and Orca Energy

Considering the 90-day investment horizon Technology Select Sector is expected to generate 72.24 times more return on investment than Orca Energy. However, Technology Select is 72.24 times more volatile than Orca Energy Group. It trades about 0.17 of its potential returns per unit of risk. Orca Energy Group is currently generating about 0.09 per unit of risk. If you would invest  22,861  in Technology Select Sector on August 19, 2025 and sell it today you would earn a total of  5,503  from holding Technology Select Sector or generate 24.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Technology Select Sector  vs.  Orca Energy Group

Technology Select Sector

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Technology Select Sector are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Technology Select may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Orca Energy Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Orca Energy Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Orca Energy is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Technology Select and Orca Energy

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

The idea behind Technology Select Sector and Orca 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.