Correlation Between Oaktree Capital and International Paper
Can any of the company-specific risk be diversified away by investing in both Oaktree Capital and International Paper 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 International Paper 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 International Paper, you can compare the effects of market volatilities on Oaktree Capital and International Paper 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 International Paper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oaktree Capital and International Paper.
Diversification Opportunities for Oaktree Capital and International Paper
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oaktree and International is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Oaktree Capital Group and International Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Paper 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 International Paper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Paper has no effect on the direction of Oaktree Capital i.e., Oaktree Capital and International Paper go up and down completely randomly.
Pair Corralation between Oaktree Capital and International Paper
If you would invest 2,075 in Oaktree Capital Group on October 31, 2024 and sell it today you would earn a total of 138.00 from holding Oaktree Capital Group or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Oaktree Capital Group vs. International Paper
Performance |
| Timeline |
| Oaktree Capital Group |
| International Paper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oaktree Capital and International Paper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oaktree Capital and International Paper
The main advantage of trading using opposite Oaktree Capital and International Paper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oaktree Capital position performs unexpectedly, International Paper 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 International Paper will offset losses from the drop in International Paper'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 |
| International Paper vs. National CineMedia | International Paper vs. Integral Ad Science | International Paper vs. Schweiter Technologies AG | International Paper vs. Xunlei Ltd Adr |
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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