Correlation Between SITC International and Orient Overseas
Can any of the company-specific risk be diversified away by investing in both SITC International and Orient Overseas 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 SITC International and Orient Overseas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SITC International Holdings and Orient Overseas International, you can compare the effects of market volatilities on SITC International and Orient Overseas 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 SITC International with a short position of Orient Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of SITC International and Orient Overseas.
Diversification Opportunities for SITC International and Orient Overseas
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SITC and Orient is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding SITC International Holdings and Orient Overseas International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Overseas Inte and SITC International 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 SITC International Holdings are associated (or correlated) with Orient Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Overseas Inte has no effect on the direction of SITC International i.e., SITC International and Orient Overseas go up and down completely randomly.
Pair Corralation between SITC International and Orient Overseas
Assuming the 90 days horizon SITC International Holdings is expected to under-perform the Orient Overseas. In addition to that, SITC International is 39.15 times more volatile than Orient Overseas International. It trades about 0.0 of its total potential returns per unit of risk. Orient Overseas International is currently generating about -0.03 per unit of volatility. If you would invest 8,135 in Orient Overseas International on July 26, 2025 and sell it today you would lose (4.00) from holding Orient Overseas International or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SITC International Holdings vs. Orient Overseas International
Performance |
| Timeline |
| SITC International |
| Orient Overseas Inte |
SITC International and Orient Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SITC International and Orient Overseas
The main advantage of trading using opposite SITC International and Orient Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SITC International position performs unexpectedly, Orient Overseas 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 Orient Overseas will offset losses from the drop in Orient Overseas' long position.| SITC International vs. Kawasaki Kisen Kaisha | SITC International vs. COSCO SHIPPING Energy | SITC International vs. Mitsui OSK Lines | SITC International vs. Orient Overseas International |
| Orient Overseas vs. Mitsui OSK Lines | Orient Overseas vs. Mitsui OSK Lines | Orient Overseas vs. SITC International Holdings | Orient Overseas vs. Kawasaki Kisen Kaisha |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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