Correlation Between Poste Italiane and ORIX JREIT

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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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Poste Italiane SpA  vs.  ORIX JREIT INC

 Performance 
       Timeline  
Poste Italiane SpA 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Poste Italiane SpA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Poste Italiane may actually be approaching a critical reversion point that can send shares even higher in March 2026.
ORIX JREIT INC 

Risk-Adjusted Performance

Weakest

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

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.
The idea behind Poste Italiane SpA and ORIX JREIT INC 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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