Correlation Between Orix Corp and Sezzle

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

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

Diversification Opportunities for Orix Corp and Sezzle

0.0

Correlation Coefficient

Orix Corp  Sezzle

Pay attention - limited upside

The 3 months correlation between Orix and Sezzle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and Sezzle Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sezzle Inc and Orix Corp 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 Corp Ads are associated (or correlated) with Sezzle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sezzle Inc has no effect on the direction of Orix Corp i.e., Orix Corp and Sezzle go up and down completely randomly.

Pair Corralation between Orix Corp and Sezzle

If you would invest  2,139  in Orix Corp Ads on December 27, 2024 and sell it today you would earn a total of  11.00  from holding Orix Corp Ads or generate 0.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Orix Corp Ads  vs.  Sezzle Inc

Orix Corp Ads

Risk-Adjusted Performance

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. In spite of fairly strong basic indicators, Orix Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sezzle Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sezzle Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Sezzle is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Orix Corp and Sezzle

The main advantage of trading using opposite Orix Corp and Sezzle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orix Corp position performs unexpectedly, Sezzle 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 Sezzle will offset losses from the drop in Sezzle's long position.

The idea behind Orix Corp Ads and Sezzle Inc 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.