Correlation Between Orix Corp and FirstCash
Can any of the company-specific risk be diversified away by investing in both Orix Corp and FirstCash 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 FirstCash 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 FirstCash, you can compare the effects of market volatilities on Orix Corp and FirstCash 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 FirstCash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orix Corp and FirstCash.
Diversification Opportunities for Orix Corp and FirstCash
Weak diversification
The 3 months correlation between Orix and FirstCash is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and FirstCash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstCash 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 FirstCash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstCash has no effect on the direction of Orix Corp i.e., Orix Corp and FirstCash go up and down completely randomly.
Pair Corralation between Orix Corp and FirstCash
Allowing for the 90-day total investment horizon Orix Corp Ads is expected to generate 0.45 times more return on investment than FirstCash. However, Orix Corp Ads is 2.21 times less risky than FirstCash. It trades about -0.24 of its potential returns per unit of risk. FirstCash is currently generating about -0.13 per unit of risk. If you would invest 11,026 in Orix Corp Ads on January 27, 2024 and sell it today you would lose (777.00) from holding Orix Corp Ads or give up 7.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orix Corp Ads vs. FirstCash
Performance |
| Timeline |
| Orix Corp Ads |
| FirstCash |
Orix Corp and FirstCash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orix Corp and FirstCash
The main advantage of trading using opposite Orix Corp and FirstCash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orix Corp position performs unexpectedly, FirstCash 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 FirstCash will offset losses from the drop in FirstCash's long position.| Orix Corp vs. Federal Agricultural Mortgage | Orix Corp vs. Federal Agricultural Mortgage | Orix Corp vs. Atlanticus Holdings Corp | Orix Corp vs. Nelnet Inc |
| FirstCash vs. World Acceptance | FirstCash vs. Enova International | FirstCash vs. Green Dot | FirstCash vs. Medallion Financial Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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