Correlation Between ORIX JREIT and Corporate Office
Can any of the company-specific risk be diversified away by investing in both ORIX JREIT and Corporate Office 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 JREIT and Corporate Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ORIX JREIT INC and Corporate Office Properties, you can compare the effects of market volatilities on ORIX JREIT and Corporate Office 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 JREIT with a short position of Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORIX JREIT and Corporate Office.
Diversification Opportunities for ORIX JREIT and Corporate Office
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ORIX and Corporate is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ORIX JREIT INC and Corporate Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Office Pro and ORIX JREIT 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 JREIT INC are associated (or correlated) with Corporate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Office Pro has no effect on the direction of ORIX JREIT i.e., ORIX JREIT and Corporate Office go up and down completely randomly.
Pair Corralation between ORIX JREIT and Corporate Office
Assuming the 90 days horizon ORIX JREIT is expected to generate 1.1 times less return on investment than Corporate Office. But when comparing it to its historical volatility, ORIX JREIT INC is 1.37 times less risky than Corporate Office. It trades about 0.14 of its potential returns per unit of risk. Corporate Office Properties is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,980 in Corporate Office Properties on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Corporate Office Properties or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ORIX JREIT INC vs. Corporate Office Properties
Performance |
| Timeline |
| ORIX JREIT INC |
| Corporate Office Pro |
ORIX JREIT and Corporate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ORIX JREIT and Corporate Office
The main advantage of trading using opposite ORIX JREIT and Corporate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORIX JREIT position performs unexpectedly, Corporate Office 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 Corporate Office will offset losses from the drop in Corporate Office's long position.| ORIX JREIT vs. Superior Plus Corp | ORIX JREIT vs. SIVERS SEMICONDUCTORS AB | ORIX JREIT vs. Norsk Hydro ASA | ORIX JREIT vs. Reliance Steel Aluminum |
| Corporate Office vs. ORIX JREIT INC | Corporate Office vs. Superior Plus Corp | Corporate Office vs. SIVERS SEMICONDUCTORS AB | Corporate Office vs. Norsk Hydro ASA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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