Correlation Between DAX Index and ORIX
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By analyzing existing cross correlation between DAX Index and ORIX Corporation, you can compare the effects of market volatilities on DAX Index and ORIX 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 DAX Index with a short position of ORIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ORIX.
Diversification Opportunities for DAX Index and ORIX
Excellent diversification
The 3 months correlation between DAX and ORIX is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ORIX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORIX and DAX Index 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 DAX Index are associated (or correlated) with ORIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORIX has no effect on the direction of DAX Index i.e., DAX Index and ORIX go up and down completely randomly.
Pair Corralation between DAX Index and ORIX
Assuming the 90 days trading horizon DAX Index is expected to under-perform the ORIX. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 2.44 times less risky than ORIX. The index trades about -0.05 of its potential returns per unit of risk. The ORIX Corporation is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,910 in ORIX Corporation on August 28, 2024 and sell it today you would earn a total of 130.00 from holding ORIX Corporation or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. ORIX Corp.
Performance |
| Timeline |
DAX Index and ORIX Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ORIX Corporation
Pair trading matchups for ORIX
Pair Trading with DAX Index and ORIX
The main advantage of trading using opposite DAX Index and ORIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ORIX 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 will offset losses from the drop in ORIX's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| ORIX vs. Superior Plus Corp | ORIX vs. NMI Holdings | ORIX vs. Origin Agritech | ORIX vs. SIVERS SEMICONDUCTORS AB |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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