Correlation Between Niagara Mohawk and Oaktree Capital
Can any of the company-specific risk be diversified away by investing in both Niagara Mohawk 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 Niagara Mohawk and Oaktree Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niagara Mohawk Power and Oaktree Capital Group, you can compare the effects of market volatilities on Niagara Mohawk 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 Niagara Mohawk with a short position of Oaktree Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niagara Mohawk and Oaktree Capital.
Diversification Opportunities for Niagara Mohawk and Oaktree Capital
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Niagara and Oaktree is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Niagara Mohawk Power 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 Niagara Mohawk 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 Niagara Mohawk Power 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 Niagara Mohawk i.e., Niagara Mohawk and Oaktree Capital go up and down completely randomly.
Pair Corralation between Niagara Mohawk and Oaktree Capital
If you would invest 6,200 in Niagara Mohawk Power on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Niagara Mohawk Power or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niagara Mohawk Power vs. Oaktree Capital Group
Performance |
| Timeline |
| Niagara Mohawk Power |
| Oaktree Capital Group |
Niagara Mohawk and Oaktree Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niagara Mohawk and Oaktree Capital
The main advantage of trading using opposite Niagara Mohawk and Oaktree Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niagara Mohawk 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.| Niagara Mohawk vs. Scholastic | Niagara Mohawk vs. CVR Partners LP | Niagara Mohawk vs. NL Industries | Niagara Mohawk vs. Avient Corp |
| Oaktree Capital vs. RenaissanceRe Holdings | Oaktree Capital vs. State Street | Oaktree Capital vs. MetLife Preferred Stock |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |