Correlation Between X Financial and Orix Corp
Can any of the company-specific risk be diversified away by investing in both X Financial and Orix Corp 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 X Financial and Orix Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Financial Class and Orix Corp Ads, you can compare the effects of market volatilities on X Financial and Orix Corp 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 X Financial with a short position of Orix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Financial and Orix Corp.
Diversification Opportunities for X Financial and Orix Corp
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XYF and Orix is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding X Financial Class and Orix Corp Ads in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orix Corp Ads and X Financial 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 X Financial Class are associated (or correlated) with Orix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orix Corp Ads has no effect on the direction of X Financial i.e., X Financial and Orix Corp go up and down completely randomly.
Pair Corralation between X Financial and Orix Corp
Considering the 90-day investment horizon X Financial Class is expected to under-perform the Orix Corp. In addition to that, X Financial is 1.44 times more volatile than Orix Corp Ads. It trades about -0.03 of its total potential returns per unit of risk. Orix Corp Ads is currently generating about 0.11 per unit of volatility. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Financial Class vs. Orix Corp Ads
Performance |
| Timeline |
| X Financial Class |
| Orix Corp Ads |
X Financial and Orix Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Financial and Orix Corp
The main advantage of trading using opposite X Financial and Orix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Financial position performs unexpectedly, Orix Corp 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 Orix Corp will offset losses from the drop in Orix Corp's long position.| X Financial vs. Orix Corp Ads | X Financial vs. FirstCash | X Financial vs. Medallion Financial Corp | X Financial vs. Oportun Financial Corp |
| Orix Corp vs. Lendingtree | Orix Corp vs. Voya Financial | Orix Corp vs. B Riley Financial | Orix Corp vs. B Riley Financial |
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 CEOs Directory module to screen CEOs from public companies around the world.
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