Correlation Between Orix Corp and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both Orix Corp and Atlanticus Holdings 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 Orix Corp and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orix Corp Ads and Atlanticus Holdings, you can compare the effects of market volatilities on Orix Corp and Atlanticus Holdings 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 Orix Corp with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orix Corp and Atlanticus Holdings.
Diversification Opportunities for Orix Corp and Atlanticus Holdings
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Orix and Atlanticus is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and Atlanticus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings and Orix Corp 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 Orix Corp Ads are associated (or correlated) with Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings has no effect on the direction of Orix Corp i.e., Orix Corp and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between Orix Corp and Atlanticus Holdings
Allowing for the 90-day total investment horizon Orix Corp is expected to generate 13.77 times less return on investment than Atlanticus Holdings. But when comparing it to its historical volatility, Orix Corp Ads is 2.14 times less risky than Atlanticus Holdings. It trades about 0.11 of its potential returns per unit of risk. Atlanticus Holdings is currently generating about 0.7 of returns per unit of risk over similar time horizon. If you would invest 3,719 in Atlanticus Holdings on August 28, 2024 and sell it today you would earn a total of 1,982 from holding Atlanticus Holdings or generate 53.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orix Corp Ads vs. Atlanticus Holdings
Performance |
| Timeline |
| Orix Corp Ads |
| Atlanticus Holdings |
Orix Corp and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orix Corp and Atlanticus Holdings
The main advantage of trading using opposite Orix Corp and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orix Corp position performs unexpectedly, Atlanticus Holdings 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 Atlanticus Holdings will offset losses from the drop in Atlanticus Holdings' long position.| Orix Corp vs. Lendingtree | Orix Corp vs. Voya Financial | Orix Corp vs. B Riley Financial | Orix Corp vs. B Riley Financial |
| Atlanticus Holdings vs. 360 Finance | Atlanticus Holdings vs. Lexinfintech Holdings | Atlanticus Holdings vs. Qudian Inc | Atlanticus Holdings vs. Enova International |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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