Correlation Between Atlas Corp and OFS Credit
Can any of the company-specific risk be diversified away by investing in both Atlas Corp 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 Atlas Corp and OFS Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and OFS Credit, you can compare the effects of market volatilities on Atlas Corp 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 Atlas Corp with a short position of OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and OFS Credit.
Diversification Opportunities for Atlas Corp and OFS Credit
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Atlas and OFS is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and OFS Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit and Atlas 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 Atlas Corp 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 Atlas Corp i.e., Atlas Corp and OFS Credit go up and down completely randomly.
Pair Corralation between Atlas Corp and OFS Credit
Assuming the 90 days trading horizon Atlas Corp is expected to generate 1.45 times less return on investment than OFS Credit. In addition to that, Atlas Corp is 1.02 times more volatile than OFS Credit. It trades about 0.05 of its total potential returns per unit of risk. OFS Credit is currently generating about 0.07 per unit of volatility. If you would invest 2,361 in OFS Credit on August 31, 2024 and sell it today you would earn a total of 14.00 from holding OFS Credit or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Corp vs. OFS Credit
Performance |
| Timeline |
| Atlas Corp |
| OFS Credit |
Atlas Corp and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and OFS Credit
The main advantage of trading using opposite Atlas Corp and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp 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.| Atlas Corp vs. Atlas Corp | Atlas Corp vs. Costamare | Atlas Corp vs. Costamare | Atlas Corp vs. Aquagold International |
| OFS Credit vs. OFS Credit | OFS Credit vs. Oxford Lane Capital | OFS Credit vs. Gladstone Land Corp | OFS Credit vs. Eagle Point Income |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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