Correlation Between Orix Corp and Intermediate Capital

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

Diversification Opportunities for Orix Corp and Intermediate Capital

0.62

Correlation Coefficient

Orix Corp  Intermediate Capital

Poor diversification

The 3 months correlation between Orix and Intermediate is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital 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 Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of Orix Corp i.e., Orix Corp and Intermediate Capital go up and down completely randomly.

Pair Corralation between Orix Corp and Intermediate Capital

Assuming the 90 days trading horizon Orix Corp is expected to generate 2.16 times less return on investment than Intermediate Capital. But when comparing it to its historical volatility, Orix Corp Ads is 2.17 times less risky than Intermediate Capital. It trades about 0.18 of its potential returns per unit of risk. Intermediate Capital Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,914  in Intermediate Capital Group on April 22, 2025 and sell it today you would earn a total of  506.00  from holding Intermediate Capital Group or generate 26.44% return on investment over 90 days.

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

Orix Corp Ads  vs.  Intermediate Capital Group

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 14 (%) 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.

Intermediate Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intermediate Capital Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Intermediate Capital unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Orix Corp and Intermediate Capital

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

The idea behind Orix Corp Ads and Intermediate Capital 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.