Correlation Between Consumer Portfolio and Oaktree Specialty
Can any of the company-specific risk be diversified away by investing in both Consumer Portfolio and Oaktree Specialty 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 Consumer Portfolio and Oaktree Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consumer Portfolio Services and Oaktree Specialty Lending, you can compare the effects of market volatilities on Consumer Portfolio and Oaktree Specialty 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 Consumer Portfolio with a short position of Oaktree Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consumer Portfolio and Oaktree Specialty.
Diversification Opportunities for Consumer Portfolio and Oaktree Specialty
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Consumer and Oaktree is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Consumer Portfolio Services and Oaktree Specialty Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree Specialty Lending and Consumer Portfolio 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 Consumer Portfolio Services are associated (or correlated) with Oaktree Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree Specialty Lending has no effect on the direction of Consumer Portfolio i.e., Consumer Portfolio and Oaktree Specialty go up and down completely randomly.
Pair Corralation between Consumer Portfolio and Oaktree Specialty
Given the investment horizon of 90 days Consumer Portfolio Services is expected to generate 2.05 times more return on investment than Oaktree Specialty. However, Consumer Portfolio is 2.05 times more volatile than Oaktree Specialty Lending. It trades about 0.04 of its potential returns per unit of risk. Oaktree Specialty Lending is currently generating about 0.02 per unit of risk. If you would invest 1,007 in Consumer Portfolio Services on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Consumer Portfolio Services or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consumer Portfolio Services vs. Oaktree Specialty Lending
Performance |
| Timeline |
| Consumer Portfolio |
| Oaktree Specialty Lending |
Consumer Portfolio and Oaktree Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consumer Portfolio and Oaktree Specialty
The main advantage of trading using opposite Consumer Portfolio and Oaktree Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consumer Portfolio position performs unexpectedly, Oaktree Specialty 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 Oaktree Specialty will offset losses from the drop in Oaktree Specialty's long position.| Consumer Portfolio vs. Atlanticus Holdings Corp | Consumer Portfolio vs. Mill City Ventures | Consumer Portfolio vs. Nelnet Inc | Consumer Portfolio vs. Senmiao Technology |
| Oaktree Specialty vs. Barings BDC | Oaktree Specialty vs. OneMain Holdings | Oaktree Specialty vs. Runway Growth Finance | Oaktree Specialty vs. Ally Financial |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |