Correlation Between Associated Capital and OFS Credit
Can any of the company-specific risk be diversified away by investing in both Associated Capital and OFS Credit 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 Associated Capital and OFS Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and OFS Credit Company,, you can compare the effects of market volatilities on Associated Capital and OFS Credit 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 Associated Capital with a short position of OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and OFS Credit.
Diversification Opportunities for Associated Capital and OFS Credit
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Associated and OFS is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and OFS Credit Company, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit , and Associated Capital 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 Associated Capital Group are associated (or correlated) with OFS Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFS Credit , has no effect on the direction of Associated Capital i.e., Associated Capital and OFS Credit go up and down completely randomly.
Pair Corralation between Associated Capital and OFS Credit
Allowing for the 90-day total investment horizon Associated Capital is expected to generate 2.29 times less return on investment than OFS Credit. In addition to that, Associated Capital is 5.47 times more volatile than OFS Credit Company,. It trades about 0.02 of its total potential returns per unit of risk. OFS Credit Company, is currently generating about 0.23 per unit of volatility. If you would invest 2,441 in OFS Credit Company, on August 31, 2024 and sell it today you would earn a total of 58.00 from holding OFS Credit Company, or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 10.96% |
| Values | Daily Returns |
Associated Capital Group vs. OFS Credit Company,
Performance |
| Timeline |
| Associated Capital |
| OFS Credit , |
Associated Capital and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and OFS Credit
The main advantage of trading using opposite Associated Capital and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, OFS Credit 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 OFS Credit will offset losses from the drop in OFS Credit's long position.| Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Muni Intermediate | Associated Capital vs. Blackrock Muniyield |
| OFS Credit vs. Prospect Capital | OFS Credit vs. State Street | OFS Credit vs. OFS Credit | OFS Credit vs. OFS Credit |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |