Correlation Between Orix Corp and VITEC SOFTWARE

Can any of the company-specific risk be diversified away by investing in both Orix Corp and VITEC SOFTWARE 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 VITEC SOFTWARE 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 VITEC SOFTWARE GROUP, you can compare the effects of market volatilities on Orix Corp and VITEC SOFTWARE 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 VITEC SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orix Corp and VITEC SOFTWARE.

Diversification Opportunities for Orix Corp and VITEC SOFTWARE

-0.43

Correlation Coefficient

Orix Corp  VITEC SOFTWARE

Very good diversification

The 3 months correlation between Orix and VITEC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and VITEC SOFTWARE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VITEC SOFTWARE GROUP 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 VITEC SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VITEC SOFTWARE GROUP has no effect on the direction of Orix Corp i.e., Orix Corp and VITEC SOFTWARE go up and down completely randomly.

Pair Corralation between Orix Corp and VITEC SOFTWARE

Assuming the 90 days trading horizon Orix Corp Ads is expected to generate 0.35 times more return on investment than VITEC SOFTWARE. However, Orix Corp Ads is 2.87 times less risky than VITEC SOFTWARE. It trades about 0.13 of its potential returns per unit of risk. VITEC SOFTWARE GROUP is currently generating about -0.08 per unit of risk. If you would invest  1,730  in Orix Corp Ads on April 24, 2025 and sell it today you would earn a total of  140.00  from holding Orix Corp Ads or generate 8.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Orix Corp Ads  vs.  VITEC SOFTWARE GROUP

Orix Corp Ads

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Orix Corp Ads are ranked lower than 10 (%) 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.

VITEC SOFTWARE GROUP

Risk-Adjusted Performance

Very Weak

Over the last 90 days VITEC SOFTWARE GROUP 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 August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Orix Corp and VITEC SOFTWARE

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

The idea behind Orix Corp Ads and VITEC SOFTWARE GROUP 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.