Correlation Between Ellsworth Growth and Oaktree Capital
Can any of the company-specific risk be diversified away by investing in both Ellsworth Growth and Oaktree Capital 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 Ellsworth Growth and Oaktree Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellsworth Growth and and Oaktree Capital Group, you can compare the effects of market volatilities on Ellsworth Growth and Oaktree Capital 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 Ellsworth Growth with a short position of Oaktree Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Growth and Oaktree Capital.
Diversification Opportunities for Ellsworth Growth and Oaktree Capital
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ellsworth and Oaktree is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Growth and and Oaktree Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree Capital Group and Ellsworth Growth 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 Ellsworth Growth and are associated (or correlated) with Oaktree Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree Capital Group has no effect on the direction of Ellsworth Growth i.e., Ellsworth Growth and Oaktree Capital go up and down completely randomly.
Pair Corralation between Ellsworth Growth and Oaktree Capital
Assuming the 90 days trading horizon Ellsworth Growth is expected to generate 1.81 times less return on investment than Oaktree Capital. But when comparing it to its historical volatility, Ellsworth Growth and is 1.52 times less risky than Oaktree Capital. It trades about 0.02 of its potential returns per unit of risk. Oaktree Capital Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,009 in Oaktree Capital Group on November 1, 2024 and sell it today you would earn a total of 204.00 from holding Oaktree Capital Group or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellsworth Growth and vs. Oaktree Capital Group
Performance |
| Timeline |
| Ellsworth Growth |
| Oaktree Capital Group |
Ellsworth Growth and Oaktree Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Growth and Oaktree Capital
The main advantage of trading using opposite Ellsworth Growth and Oaktree Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Growth position performs unexpectedly, Oaktree Capital 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 Capital will offset losses from the drop in Oaktree Capital's long position.| Ellsworth Growth vs. Bancroft Fund | Ellsworth Growth vs. GAMCO Natural Resources | Ellsworth Growth vs. The Gabelli Multimedia | Ellsworth Growth vs. GAMCO Global Gold |
| Oaktree Capital vs. The Gabelli Multimedia | Oaktree Capital vs. The Gabelli Equity | Oaktree Capital vs. Virtus AllianzGI Convertible | Oaktree Capital vs. Tri Continental PFD |
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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