Correlation Between Affiliated Managers and OFS Credit
Can any of the company-specific risk be diversified away by investing in both Affiliated Managers 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 Affiliated Managers and OFS Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affiliated Managers Group and OFS Credit, you can compare the effects of market volatilities on Affiliated Managers 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 Affiliated Managers with a short position of OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Managers and OFS Credit.
Diversification Opportunities for Affiliated Managers and OFS Credit
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Affiliated and OFS is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Managers Group and OFS Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit and Affiliated Managers 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 Affiliated Managers 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 Affiliated Managers i.e., Affiliated Managers and OFS Credit go up and down completely randomly.
Pair Corralation between Affiliated Managers and OFS Credit
Considering the 90-day investment horizon Affiliated Managers Group is expected to under-perform the OFS Credit. In addition to that, Affiliated Managers is 5.77 times more volatile than OFS Credit. It trades about -0.06 of its total potential returns per unit of risk. OFS Credit is currently generating about 0.0 per unit of volatility. If you would invest 2,467 in OFS Credit on August 27, 2024 and sell it today you would lose (1.00) from holding OFS Credit or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affiliated Managers Group vs. OFS Credit
Performance |
| Timeline |
| Affiliated Managers |
| OFS Credit |
Affiliated Managers and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affiliated Managers and OFS Credit
The main advantage of trading using opposite Affiliated Managers and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Managers 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.| Affiliated Managers vs. Brightsphere Investment Group | Affiliated Managers vs. Franklin Templeton Limited | Affiliated Managers vs. Blackrock Muni Intermediate | Affiliated Managers vs. Munivest Fund |
| OFS Credit vs. Oxford Lane Capital | OFS Credit vs. XOMA Corporation | OFS Credit vs. HUMANA INC | OFS Credit vs. Aquagold International |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance |