Correlation Between ORIX and Cogobuy
Can any of the company-specific risk be diversified away by investing in both ORIX and Cogobuy 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 and Cogobuy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ORIX Corporation and Cogobuy Group, you can compare the effects of market volatilities on ORIX and Cogobuy 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 with a short position of Cogobuy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORIX and Cogobuy.
Diversification Opportunities for ORIX and Cogobuy
Pay attention - limited upside
The 3 months correlation between ORIX and Cogobuy is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ORIX Corp. and Cogobuy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogobuy Group and ORIX 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 Corporation are associated (or correlated) with Cogobuy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogobuy Group has no effect on the direction of ORIX i.e., ORIX and Cogobuy go up and down completely randomly.
Pair Corralation between ORIX and Cogobuy
Assuming the 90 days horizon ORIX Corporation is expected to generate 0.57 times more return on investment than Cogobuy. However, ORIX Corporation is 1.77 times less risky than Cogobuy. It trades about 0.17 of its potential returns per unit of risk. Cogobuy Group is currently generating about -0.12 per unit of risk. If you would invest 1,940 in ORIX Corporation on September 2, 2024 and sell it today you would earn a total of 160.00 from holding ORIX Corporation or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ORIX Corp. vs. Cogobuy Group
Performance |
| Timeline |
| ORIX |
| Cogobuy Group |
ORIX and Cogobuy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ORIX and Cogobuy
The main advantage of trading using opposite ORIX and Cogobuy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORIX position performs unexpectedly, Cogobuy 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 Cogobuy will offset losses from the drop in Cogobuy's long position.| ORIX vs. OURGAME INTHOLDL 00005 | ORIX vs. Autohome ADR | ORIX vs. ANGLER GAMING PLC | ORIX vs. Games Workshop Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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