Correlation Between OrbitalLimited and Airthings ASA

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Can any of the company-specific risk be diversified away by investing in both OrbitalLimited and Airthings ASA 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 OrbitalLimited and Airthings ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbital Limited and Airthings ASA, you can compare the effects of market volatilities on OrbitalLimited and Airthings ASA 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 OrbitalLimited with a short position of Airthings ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of OrbitalLimited and Airthings ASA.

Diversification Opportunities for OrbitalLimited and Airthings ASA

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between OrbitalLimited and Airthings ASA

If you would invest  0.00  in Orbital Limited on September 6, 2025 and sell it today you would earn a total of  0.00  from holding Orbital Limited or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.2%
ValuesDaily Returns

Orbital Limited  vs.  Airthings ASA

 Performance 
       Timeline  
Orbital Limited 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Over the last 90 days Orbital Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, OrbitalLimited is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Airthings ASA 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Airthings ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Airthings ASA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

OrbitalLimited and Airthings ASA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with OrbitalLimited and Airthings ASA

The main advantage of trading using opposite OrbitalLimited and Airthings ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OrbitalLimited position performs unexpectedly, Airthings ASA 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 Airthings ASA will offset losses from the drop in Airthings ASA's long position.
The idea behind Orbital Limited and Airthings ASA 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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