Correlation Between ORIX and CRYOLIFE
Can any of the company-specific risk be diversified away by investing in both ORIX and CRYOLIFE 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 CRYOLIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ORIX Corporation and CRYOLIFE, you can compare the effects of market volatilities on ORIX and CRYOLIFE 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 CRYOLIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORIX and CRYOLIFE.
Diversification Opportunities for ORIX and CRYOLIFE
Very good diversification
The 3 months correlation between ORIX and CRYOLIFE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ORIX Corp. and CRYOLIFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRYOLIFE 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 CRYOLIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRYOLIFE has no effect on the direction of ORIX i.e., ORIX and CRYOLIFE go up and down completely randomly.
Pair Corralation between ORIX and CRYOLIFE
Assuming the 90 days horizon ORIX is expected to generate 2.66 times less return on investment than CRYOLIFE. In addition to that, ORIX is 1.07 times more volatile than CRYOLIFE. It trades about 0.05 of its total potential returns per unit of risk. CRYOLIFE is currently generating about 0.14 per unit of volatility. If you would invest 1,520 in CRYOLIFE on September 3, 2024 and sell it today you would earn a total of 1,215 from holding CRYOLIFE or generate 79.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ORIX Corp. vs. CRYOLIFE
Performance |
| Timeline |
| ORIX |
| CRYOLIFE |
ORIX and CRYOLIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ORIX and CRYOLIFE
The main advantage of trading using opposite ORIX and CRYOLIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORIX position performs unexpectedly, CRYOLIFE 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 CRYOLIFE will offset losses from the drop in CRYOLIFE's long position.| ORIX vs. Perseus Mining Limited | ORIX vs. PennyMac Mortgage Investment | ORIX vs. Japan Asia Investment | ORIX vs. MGIC INVESTMENT |
| CRYOLIFE vs. Westlake Chemical | CRYOLIFE vs. Soken Chemical Engineering | CRYOLIFE vs. Perseus Mining Limited | CRYOLIFE vs. MCEWEN MINING INC |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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