Correlation Between MOVIE GAMES and Orix Corp

Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES 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 MOVIE GAMES and Orix Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MOVIE GAMES SA and Orix Corp Ads, you can compare the effects of market volatilities on MOVIE GAMES 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 MOVIE GAMES with a short position of Orix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Orix Corp.

Diversification Opportunities for MOVIE GAMES and Orix Corp

-0.27

Correlation Coefficient

MOVIE GAMES  Orix Corp

Very good diversification

The 3 months correlation between MOVIE and Orix is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA 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 MOVIE GAMES 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 MOVIE GAMES SA 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 MOVIE GAMES i.e., MOVIE GAMES and Orix Corp go up and down completely randomly.

Pair Corralation between MOVIE GAMES and Orix Corp

Assuming the 90 days horizon MOVIE GAMES SA is expected to under-perform the Orix Corp. In addition to that, MOVIE GAMES is 2.3 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 0.1 per unit of volatility. If you would invest  9,700  in Orix Corp Ads on October 6, 2024 and sell it today you would earn a total of  600.00  from holding Orix Corp Ads or generate 6.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.5%
Values	Daily Returns

MOVIE GAMES SA  vs.  Orix Corp Ads

MOVIE GAMES SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MOVIE GAMES SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Orix Corp Ads

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Orix Corp Ads are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Orix Corp is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MOVIE GAMES and Orix Corp

The main advantage of trading using opposite MOVIE GAMES and Orix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES 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.

The idea behind MOVIE GAMES SA and Orix Corp Ads pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.