Correlation Between Controladora Vuela and ORIX JREIT
Can any of the company-specific risk be diversified away by investing in both Controladora Vuela and ORIX JREIT 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 Controladora Vuela and ORIX JREIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Controladora Vuela Compaa and ORIX JREIT INC, you can compare the effects of market volatilities on Controladora Vuela and ORIX JREIT 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 Controladora Vuela with a short position of ORIX JREIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Controladora Vuela and ORIX JREIT.
Diversification Opportunities for Controladora Vuela and ORIX JREIT
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Controladora and ORIX is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Controladora Vuela Compaa and ORIX JREIT INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORIX JREIT INC and Controladora Vuela 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 Controladora Vuela Compaa are associated (or correlated) with ORIX JREIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORIX JREIT INC has no effect on the direction of Controladora Vuela i.e., Controladora Vuela and ORIX JREIT go up and down completely randomly.
Pair Corralation between Controladora Vuela and ORIX JREIT
Assuming the 90 days trading horizon Controladora Vuela Compaa is expected to generate 0.97 times more return on investment than ORIX JREIT. However, Controladora Vuela Compaa is 1.03 times less risky than ORIX JREIT. It trades about 0.11 of its potential returns per unit of risk. ORIX JREIT INC is currently generating about -0.01 per unit of risk. If you would invest 620.00 in Controladora Vuela Compaa on December 2, 2025 and sell it today you would earn a total of 125.00 from holding Controladora Vuela Compaa or generate 20.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Controladora Vuela Compaa vs. ORIX JREIT INC
Performance |
| Timeline |
| Controladora Vuela Compaa |
| ORIX JREIT INC |
Controladora Vuela and ORIX JREIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Controladora Vuela and ORIX JREIT
The main advantage of trading using opposite Controladora Vuela and ORIX JREIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Controladora Vuela position performs unexpectedly, ORIX JREIT 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 ORIX JREIT will offset losses from the drop in ORIX JREIT's long position.| Controladora Vuela vs. BK MANDIRI ADR20 | Controladora Vuela vs. PT Bank Mandiri | Controladora Vuela vs. PT Bank Rakyat | Controladora Vuela vs. Grupo Aval Acciones |
| ORIX JREIT vs. Kingdee International Software | ORIX JREIT vs. Take Two Interactive Software | ORIX JREIT vs. Commercial Vehicle Group | ORIX JREIT vs. Geely Automobile Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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