Correlation Between Oaktree Capital and State Street
Can any of the company-specific risk be diversified away by investing in both Oaktree Capital and State Street 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 Oaktree Capital and State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oaktree Capital Group and State Street, you can compare the effects of market volatilities on Oaktree Capital and State Street 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 Oaktree Capital with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oaktree Capital and State Street.
Diversification Opportunities for Oaktree Capital and State Street
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oaktree and State is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Oaktree Capital Group and State Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street and Oaktree Capital 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 Oaktree Capital Group are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street has no effect on the direction of Oaktree Capital i.e., Oaktree Capital and State Street go up and down completely randomly.
Pair Corralation between Oaktree Capital and State Street
Assuming the 90 days trading horizon Oaktree Capital Group is expected to under-perform the State Street. In addition to that, Oaktree Capital is 2.76 times more volatile than State Street. It trades about -0.06 of its total potential returns per unit of risk. State Street is currently generating about -0.09 per unit of volatility. If you would invest 2,490 in State Street on August 27, 2024 and sell it today you would lose (20.00) from holding State Street or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oaktree Capital Group vs. State Street
Performance |
| Timeline |
| Oaktree Capital Group |
| State Street |
Oaktree Capital and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oaktree Capital and State Street
The main advantage of trading using opposite Oaktree Capital and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oaktree Capital position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Oaktree Capital vs. The Gabelli Multimedia | Oaktree Capital vs. The Gabelli Equity | Oaktree Capital vs. Virtus AllianzGI Convertible | Oaktree Capital vs. Tri Continental PFD |
| State Street vs. The Gabelli Equity | State Street vs. The Gabelli Multimedia | State Street vs. The Gabelli Equity | State Street vs. Virtus AllianzGI Convertible |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |