Correlation Between Orix Corp and EHealth
Can any of the company-specific risk be diversified away by investing in both Orix Corp and EHealth 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 EHealth 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 eHealth, you can compare the effects of market volatilities on Orix Corp and EHealth 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 EHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orix Corp and EHealth.
Diversification Opportunities for Orix Corp and EHealth
Pay attention - limited upside
The 3 months correlation between Orix and EHealth is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and eHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eHealth 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 EHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eHealth has no effect on the direction of Orix Corp i.e., Orix Corp and EHealth go up and down completely randomly.
Pair Corralation between Orix Corp and EHealth
Allowing for the 90-day total investment horizon Orix Corp Ads is expected to generate 0.45 times more return on investment than EHealth. However, Orix Corp Ads is 2.24 times less risky than EHealth. It trades about 0.02 of its potential returns per unit of risk. eHealth is currently generating about -0.02 per unit of risk. If you would invest 10,350 in Orix Corp Ads on August 27, 2024 and sell it today you would earn a total of 412.00 from holding Orix Corp Ads or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orix Corp Ads vs. eHealth
Performance |
| Timeline |
| Orix Corp Ads |
| eHealth |
Orix Corp and EHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orix Corp and EHealth
The main advantage of trading using opposite Orix Corp and EHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orix Corp position performs unexpectedly, EHealth 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 EHealth will offset losses from the drop in EHealth's long position.| Orix Corp vs. Lendingtree | Orix Corp vs. Voya Financial | Orix Corp vs. B Riley Financial | Orix Corp vs. B Riley Financial |
| EHealth vs. GoHealth | EHealth vs. Tian Ruixiang Holdings | EHealth vs. Huize Holding | EHealth vs. CorVel Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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