Correlation Between Vantage Drilling and Orbit Garant
Can any of the company-specific risk be diversified away by investing in both Vantage Drilling and Orbit Garant 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 Vantage Drilling and Orbit Garant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vantage Drilling International and Orbit Garant Drilling, you can compare the effects of market volatilities on Vantage Drilling and Orbit Garant 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 Vantage Drilling with a short position of Orbit Garant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vantage Drilling and Orbit Garant.
Diversification Opportunities for Vantage Drilling and Orbit Garant
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vantage and Orbit is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Vantage Drilling International and Orbit Garant Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbit Garant Drilling and Vantage Drilling 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 Vantage Drilling International are associated (or correlated) with Orbit Garant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbit Garant Drilling has no effect on the direction of Vantage Drilling i.e., Vantage Drilling and Orbit Garant go up and down completely randomly.
Pair Corralation between Vantage Drilling and Orbit Garant
Assuming the 90 days horizon Vantage Drilling is expected to generate 31.57 times less return on investment than Orbit Garant. But when comparing it to its historical volatility, Vantage Drilling International is 24.18 times less risky than Orbit Garant. It trades about 0.1 of its potential returns per unit of risk. Orbit Garant Drilling is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Orbit Garant Drilling on April 21, 2025 and sell it today you would earn a total of 27.00 from holding Orbit Garant Drilling or generate 27.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vantage Drilling International vs. Orbit Garant Drilling
Performance |
| Timeline |
| Vantage Drilling Int |
| Orbit Garant Drilling |
Vantage Drilling and Orbit Garant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vantage Drilling and Orbit Garant
The main advantage of trading using opposite Vantage Drilling and Orbit Garant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vantage Drilling position performs unexpectedly, Orbit Garant 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 Orbit Garant will offset losses from the drop in Orbit Garant's long position.| Vantage Drilling vs. PHX Energy Services | Vantage Drilling vs. Total Energy Services | Vantage Drilling vs. Unit Corporation | Vantage Drilling vs. Worley Parsons |
| Orbit Garant vs. Major Drilling Group | Orbit Garant vs. Geodrill Limited | Orbit Garant vs. Black Iron | Orbit Garant vs. Atico Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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