Correlation Between Orix Corp and Oportun Financial
Can any of the company-specific risk be diversified away by investing in both Orix Corp and Oportun Financial 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 Oportun Financial 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 Oportun Financial Corp, you can compare the effects of market volatilities on Orix Corp and Oportun Financial 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 Oportun Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orix Corp and Oportun Financial.
Diversification Opportunities for Orix Corp and Oportun Financial
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Orix and Oportun is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and Oportun Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oportun Financial Corp 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 Oportun Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oportun Financial Corp has no effect on the direction of Orix Corp i.e., Orix Corp and Oportun Financial go up and down completely randomly.
Pair Corralation between Orix Corp and Oportun Financial
Allowing for the 90-day total investment horizon Orix Corp Ads is expected to generate 0.32 times more return on investment than Oportun Financial. However, Orix Corp Ads is 3.12 times less risky than Oportun Financial. It trades about 0.05 of its potential returns per unit of risk. Oportun Financial Corp is currently generating about 0.01 per unit of risk. If you would invest 9,187 in Orix Corp Ads on August 25, 2024 and sell it today you would earn a total of 1,575 from holding Orix Corp Ads or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orix Corp Ads vs. Oportun Financial Corp
Performance |
| Timeline |
| Orix Corp Ads |
| Oportun Financial Corp |
Orix Corp and Oportun Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orix Corp and Oportun Financial
The main advantage of trading using opposite Orix Corp and Oportun Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orix Corp position performs unexpectedly, Oportun Financial 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 Oportun Financial will offset losses from the drop in Oportun Financial's long position.| Orix Corp vs. Atlanticus Holdings Corp | Orix Corp vs. Nelnet Inc | Orix Corp vs. EZCORP Inc | Orix Corp vs. SLM Corp |
| Oportun Financial vs. SLM Corp | Oportun Financial vs. Orix Corp Ads | Oportun Financial vs. FirstCash | Oportun Financial vs. Medallion Financial 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |