Correlation Between Enova International and Oaktree Specialty
Can any of the company-specific risk be diversified away by investing in both Enova International 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 Enova International and Oaktree Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enova International and Oaktree Specialty Lending, you can compare the effects of market volatilities on Enova International 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 Enova International with a short position of Oaktree Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enova International and Oaktree Specialty.
Diversification Opportunities for Enova International and Oaktree Specialty
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enova and Oaktree is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Enova International 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 Enova International 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 Enova International 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 Enova International i.e., Enova International and Oaktree Specialty go up and down completely randomly.
Pair Corralation between Enova International and Oaktree Specialty
Given the investment horizon of 90 days Enova International is expected to generate 2.03 times more return on investment than Oaktree Specialty. However, Enova International is 2.03 times more volatile than Oaktree Specialty Lending. It trades about 0.34 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 8,711 in Enova International on August 30, 2024 and sell it today you would earn a total of 1,843 from holding Enova International or generate 21.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enova International vs. Oaktree Specialty Lending
Performance |
| Timeline |
| Enova International |
| Oaktree Specialty Lending |
Enova International and Oaktree Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enova International and Oaktree Specialty
The main advantage of trading using opposite Enova International and Oaktree Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enova International 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.| Enova International vs. 360 Finance | Enova International vs. Atlanticus Holdings | Enova International vs. X Financial Class | Enova International vs. LendingClub Corp |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |