Correlation Between CaliberCos and OFS Credit
Can any of the company-specific risk be diversified away by investing in both CaliberCos 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 CaliberCos and OFS Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CaliberCos Class A and OFS Credit, you can compare the effects of market volatilities on CaliberCos 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 CaliberCos with a short position of OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of CaliberCos and OFS Credit.
Diversification Opportunities for CaliberCos and OFS Credit
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CaliberCos and OFS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CaliberCos Class A and OFS Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit and CaliberCos 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 CaliberCos Class A 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 CaliberCos i.e., CaliberCos and OFS Credit go up and down completely randomly.
Pair Corralation between CaliberCos and OFS Credit
Considering the 90-day investment horizon CaliberCos Class A is expected to under-perform the OFS Credit. In addition to that, CaliberCos is 22.39 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 0.22 per unit of volatility. If you would invest 2,284 in OFS Credit on September 2, 2024 and sell it today you would earn a total of 91.00 from holding OFS Credit or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CaliberCos Class A vs. OFS Credit
Performance |
| Timeline |
| CaliberCos Class A |
| OFS Credit |
CaliberCos and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CaliberCos and OFS Credit
The main advantage of trading using opposite CaliberCos and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CaliberCos 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.| CaliberCos vs. FitLife Brands, Common | CaliberCos vs. ScanSource | CaliberCos vs. Tyson Foods | CaliberCos vs. Emerson Radio |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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