Correlation Between Fastly and ORIX JREIT
Can any of the company-specific risk be diversified away by investing in both Fastly 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 Fastly and ORIX JREIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastly Class A and ORIX JREIT INC, you can compare the effects of market volatilities on Fastly 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 Fastly with a short position of ORIX JREIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastly and ORIX JREIT.
Diversification Opportunities for Fastly and ORIX JREIT
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fastly and ORIX is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fastly Class A 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 Fastly 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 Fastly Class A 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 Fastly i.e., Fastly and ORIX JREIT go up and down completely randomly.
Pair Corralation between Fastly and ORIX JREIT
Given the investment horizon of 90 days Fastly Class A is expected to generate 3.15 times more return on investment than ORIX JREIT. However, Fastly is 3.15 times more volatile than ORIX JREIT INC. It trades about 0.12 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 1,165 in Fastly Class A on December 2, 2025 and sell it today you would earn a total of 748.50 from holding Fastly Class A or generate 64.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
Fastly Class A vs. ORIX JREIT INC
Performance |
| Timeline |
| Fastly Class A |
| ORIX JREIT INC |
Fastly and ORIX JREIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastly and ORIX JREIT
The main advantage of trading using opposite Fastly and ORIX JREIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastly 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 Fastly Class A 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.| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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