Correlation Between Orix Corp and Green Dot

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

Diversification Opportunities for Orix Corp and Green Dot

0.72

Correlation Coefficient

Orix Corp  Green Dot

Poor diversification

The 3 months correlation between Orix and Green is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and Green Dot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Dot 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 Green Dot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Dot has no effect on the direction of Orix Corp i.e., Orix Corp and Green Dot go up and down completely randomly.

Pair Corralation between Orix Corp and Green Dot

Allowing for the 90-day total investment horizon Orix Corp is expected to generate 1.92 times less return on investment than Green Dot. But when comparing it to its historical volatility, Orix Corp Ads is 3.41 times less risky than Green Dot. It trades about 0.17 of its potential returns per unit of risk. Green Dot is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  812.00  in Green Dot on May 5, 2025 and sell it today you would earn a total of  176.00  from holding Green Dot or generate 21.67% 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.  Green Dot

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 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Orix Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Green Dot

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Green Dot are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Green Dot unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Orix Corp and Green Dot

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

The idea behind Orix Corp Ads and Green Dot 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..