Correlation Between Orix Corp and Yirendai
Can any of the company-specific risk be diversified away by investing in both Orix Corp and Yirendai 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 Yirendai 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 Yirendai, you can compare the effects of market volatilities on Orix Corp and Yirendai 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 Yirendai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orix Corp and Yirendai.
Diversification Opportunities for Orix Corp and Yirendai
Excellent diversification
The 3 months correlation between Orix and Yirendai is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and Yirendai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yirendai 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 Yirendai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yirendai has no effect on the direction of Orix Corp i.e., Orix Corp and Yirendai go up and down completely randomly.
Pair Corralation between Orix Corp and Yirendai
Allowing for the 90-day total investment horizon Orix Corp Ads is expected to generate 0.26 times more return on investment than Yirendai. However, Orix Corp Ads is 3.8 times less risky than Yirendai. It trades about 0.11 of its potential returns per unit of risk. Yirendai is currently generating about -0.19 per unit of risk. If you would invest 10,578 in Orix Corp Ads on August 28, 2024 and sell it today you would earn a total of 322.00 from holding Orix Corp Ads or generate 3.04% 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. Yirendai
Performance |
| Timeline |
| Orix Corp Ads |
| Yirendai |
Orix Corp and Yirendai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orix Corp and Yirendai
The main advantage of trading using opposite Orix Corp and Yirendai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orix Corp position performs unexpectedly, Yirendai 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 Yirendai will offset losses from the drop in Yirendai's long position.| Orix Corp vs. Atlanticus Holdings Corp | Orix Corp vs. Nelnet Inc | Orix Corp vs. EZCORP Inc | Orix Corp vs. SLM Corp |
| Yirendai vs. Lexinfintech Holdings | Yirendai vs. FinVolution Group | Yirendai vs. 360 Finance | Yirendai vs. Navient 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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