Correlation Between SOGECLAIR and Orix Corp

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

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

Diversification Opportunities for SOGECLAIR and Orix Corp

0.86

Correlation Coefficient

SOGECLAIR  Orix Corp

Very poor diversification

The 3 months correlation between SOGECLAIR and Orix is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SOGECLAIR SA INH 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 SOGECLAIR 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 SOGECLAIR SA INH 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 SOGECLAIR i.e., SOGECLAIR and Orix Corp go up and down completely randomly.

Pair Corralation between SOGECLAIR and Orix Corp

Assuming the 90 days horizon SOGECLAIR SA INH is expected to generate 3.42 times more return on investment than Orix Corp. However, SOGECLAIR is 3.42 times more volatile than Orix Corp Ads. It trades about 0.2 of its potential returns per unit of risk. Orix Corp Ads is currently generating about 0.16 per unit of risk. If you would invest  1,937  in SOGECLAIR SA INH on April 23, 2025 and sell it today you would earn a total of  923.00  from holding SOGECLAIR SA INH or generate 47.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

SOGECLAIR SA INH  vs.  Orix Corp Ads

SOGECLAIR SA INH

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SOGECLAIR SA INH are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SOGECLAIR reported solid returns over the last few months and may actually be approaching a breakup point.

Orix Corp Ads

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Orix Corp Ads are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Orix Corp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SOGECLAIR and Orix Corp

The main advantage of trading using opposite SOGECLAIR and Orix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOGECLAIR 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 SOGECLAIR SA INH 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.