Correlation Between Orix Corp and MSCI

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

Diversification Opportunities for Orix Corp and MSCI

0.14

Correlation Coefficient

Orix Corp  MSCI

Average diversification

The 3 months correlation between Orix and MSCI is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of Orix Corp i.e., Orix Corp and MSCI go up and down completely randomly.

Pair Corralation between Orix Corp and MSCI

Allowing for the 90-day total investment horizon Orix Corp Ads is expected to under-perform the MSCI. But the stock apears to be less risky and, when comparing its historical volatility, Orix Corp Ads is 2.03 times less risky than MSCI. The stock trades about -0.15 of its potential returns per unit of risk. The MSCI Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  56,916  in MSCI Inc on July 11, 2025 and sell it today you would lose (222.00) from holding MSCI Inc or give up 0.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Orix Corp Ads  vs.  MSCI Inc

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.

MSCI Inc

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in MSCI Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, MSCI is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Orix Corp and MSCI

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

The idea behind Orix Corp Ads and MSCI Inc 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.