Correlation Between DATAGROUP and ORIX

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

By analyzing existing cross correlation between DATAGROUP SE and ORIX Corporation, you can compare the effects of market volatilities on DATAGROUP and ORIX 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 DATAGROUP with a short position of ORIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATAGROUP and ORIX.

Diversification Opportunities for DATAGROUP and ORIX

0.79

Correlation Coefficient

DATAGROUP  ORIX

Poor diversification

The 3 months correlation between DATAGROUP and ORIX is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE and ORIX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORIX and DATAGROUP 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 DATAGROUP SE are associated (or correlated) with ORIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORIX has no effect on the direction of DATAGROUP i.e., DATAGROUP and ORIX go up and down completely randomly.

Pair Corralation between DATAGROUP and ORIX

Assuming the 90 days trading horizon DATAGROUP SE is expected to generate 0.67 times more return on investment than ORIX. However, DATAGROUP SE is 1.49 times less risky than ORIX. It trades about 0.22 of its potential returns per unit of risk. ORIX Corporation is currently generating about 0.13 per unit of risk. If you would invest  5,410  in DATAGROUP SE on April 21, 2025 and sell it today you would earn a total of  690.00  from holding DATAGROUP SE or generate 12.75% return on investment over 90 days.

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

DATAGROUP SE  vs.  ORIX Corp.

DATAGROUP SE

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in DATAGROUP SE are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical indicators, DATAGROUP may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ORIX

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ORIX Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ORIX may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with DATAGROUP and ORIX

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

The idea behind DATAGROUP SE and ORIX Corporation 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.