Correlation Between ORIX and TAMBANG BATUBARA-B-

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

By analyzing existing cross correlation between ORIX Corporation and TAMBANG BATUBARA B , you can compare the effects of market volatilities on ORIX and TAMBANG BATUBARA-B- 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 TAMBANG BATUBARA-B-. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORIX and TAMBANG BATUBARA-B-.

Diversification Opportunities for ORIX and TAMBANG BATUBARA-B-

0.13

Correlation Coefficient

ORIX  TAMBANG BATUBARA-B-

Average diversification

The 3 months correlation between ORIX and TAMBANG is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ORIX Corp. and TAMBANG BATUBARA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAMBANG BATUBARA-B- 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 TAMBANG BATUBARA-B-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAMBANG BATUBARA-B- has no effect on the direction of ORIX i.e., ORIX and TAMBANG BATUBARA-B- go up and down completely randomly.

Pair Corralation between ORIX and TAMBANG BATUBARA-B-

Assuming the 90 days horizon ORIX Corporation is expected to generate 0.59 times more return on investment than TAMBANG BATUBARA-B-. However, ORIX Corporation is 1.71 times less risky than TAMBANG BATUBARA-B-. It trades about -0.02 of its potential returns per unit of risk. TAMBANG BATUBARA B is currently generating about -0.1 per unit of risk. If you would invest  2,040  in ORIX Corporation on December 29, 2024 and sell it today you would lose (60.00) from holding ORIX Corporation or give up 2.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ORIX Corp.  vs.  TAMBANG BATUBARA B

ORIX

Risk-Adjusted Performance

Very Weak

Over the last 90 days ORIX Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ORIX is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

TAMBANG BATUBARA-B-

Risk-Adjusted Performance

Very Weak

Over the last 90 days TAMBANG BATUBARA B has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with ORIX and TAMBANG BATUBARA-B-

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

The idea behind ORIX Corporation and TAMBANG BATUBARA B 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.