Correlation Between Poste Italiane and ORIX JREIT
Can any of the company-specific risk be diversified away by investing in both Poste Italiane 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 Poste Italiane and ORIX JREIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poste Italiane SpA and ORIX JREIT INC, you can compare the effects of market volatilities on Poste Italiane 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 Poste Italiane with a short position of ORIX JREIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poste Italiane and ORIX JREIT.
Diversification Opportunities for Poste Italiane and ORIX JREIT
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Poste and ORIX is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Poste Italiane SpA 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 Poste Italiane 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 Poste Italiane SpA 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 Poste Italiane i.e., Poste Italiane and ORIX JREIT go up and down completely randomly.
Pair Corralation between Poste Italiane and ORIX JREIT
Assuming the 90 days horizon Poste Italiane SpA is expected to generate 0.48 times more return on investment than ORIX JREIT. However, Poste Italiane SpA is 2.09 times less risky than ORIX JREIT. It trades about 0.15 of its potential returns per unit of risk. ORIX JREIT INC is currently generating about -0.04 per unit of risk. If you would invest 2,070 in Poste Italiane SpA on November 11, 2025 and sell it today you would earn a total of 183.00 from holding Poste Italiane SpA or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poste Italiane SpA vs. ORIX JREIT INC
Performance |
| Timeline |
| Poste Italiane SpA |
| ORIX JREIT INC |
Poste Italiane and ORIX JREIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poste Italiane and ORIX JREIT
The main advantage of trading using opposite Poste Italiane and ORIX JREIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poste Italiane 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.| Poste Italiane vs. AGF Management Limited | Poste Italiane vs. Silicon Motion Technology | Poste Italiane vs. LANDSEA GREEN MANAGEMENT | Poste Italiane vs. CHEMICAL INDUSTRIES |
| ORIX JREIT vs. United Natural Foods | ORIX JREIT vs. TYSON FOODS A | ORIX JREIT vs. National Beverage Corp | ORIX JREIT vs. Supermarket Income REIT |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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