Correlation Between NCC and Orion Group
Can any of the company-specific risk be diversified away by investing in both NCC and Orion Group 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 NCC and Orion Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NCC Limited and Orion Group Holdings, you can compare the effects of market volatilities on NCC and Orion Group 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 NCC with a short position of Orion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCC and Orion Group.
Diversification Opportunities for NCC and Orion Group
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NCC and Orion is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding NCC Limited and Orion Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orion Group Holdings and NCC 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 NCC Limited are associated (or correlated) with Orion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orion Group Holdings has no effect on the direction of NCC i.e., NCC and Orion Group go up and down completely randomly.
Pair Corralation between NCC and Orion Group
Assuming the 90 days trading horizon NCC Limited is expected to under-perform the Orion Group. But the stock apears to be less risky and, when comparing its historical volatility, NCC Limited is 2.56 times less risky than Orion Group. The stock trades about -0.16 of its potential returns per unit of risk. The Orion Group Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 672.00 in Orion Group Holdings on August 18, 2025 and sell it today you would earn a total of 277.00 from holding Orion Group Holdings or generate 41.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NCC Limited vs. Orion Group Holdings
Performance |
| Timeline |
| NCC Limited |
| Orion Group Holdings |
NCC and Orion Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCC and Orion Group
The main advantage of trading using opposite NCC and Orion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCC position performs unexpectedly, Orion Group 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 Orion Group will offset losses from the drop in Orion Group's long position.| NCC vs. Sakar Healthcare Limited | NCC vs. Medplus Health Services | NCC vs. Dev Information Technology | NCC vs. Amrutanjan Health Care |
| Orion Group vs. Matrix Service Co | Orion Group vs. Concrete Pumping Holdings | Orion Group vs. Smith Wesson Brands | Orion Group vs. Falcons Beyond Global, |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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