Correlation Between ORIX and Rollins

Can any of the company-specific risk be diversified away by investing in both ORIX and Rollins 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 and Rollins into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ORIX Corporation and Rollins, you can compare the effects of market volatilities on ORIX and Rollins 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 with a short position of Rollins. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORIX and Rollins.

Diversification Opportunities for ORIX and Rollins

0.15

Correlation Coefficient

ORIX  Rollins

Average diversification

The 3 months correlation between ORIX and Rollins is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ORIX Corp. and Rollins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rollins and ORIX 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 Corporation are associated (or correlated) with Rollins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rollins has no effect on the direction of ORIX i.e., ORIX and Rollins go up and down completely randomly.

Pair Corralation between ORIX and Rollins

Assuming the 90 days horizon ORIX Corporation is expected to generate 1.17 times more return on investment than Rollins. However, ORIX is 1.17 times more volatile than Rollins. It trades about 0.19 of its potential returns per unit of risk. Rollins is currently generating about 0.04 per unit of risk. If you would invest  1,910  in ORIX Corporation on June 30, 2025 and sell it today you would earn a total of  330.00  from holding ORIX Corporation or generate 17.28% return on investment over 90 days.

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

ORIX Corp.  vs.  Rollins

ORIX

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ORIX Corporation are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ORIX reported solid returns over the last few months and may actually be approaching a breakup point.

Rollins

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Rollins are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Rollins is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ORIX and Rollins

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

The idea behind ORIX Corporation and Rollins 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.