Correlation Between OFS Credit and Equus Total
Can any of the company-specific risk be diversified away by investing in both OFS Credit and Equus Total 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 OFS Credit and Equus Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFS Credit Company, and Equus Total Return, you can compare the effects of market volatilities on OFS Credit and Equus Total 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 OFS Credit with a short position of Equus Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFS Credit and Equus Total.
Diversification Opportunities for OFS Credit and Equus Total
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OFS and Equus is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding OFS Credit Company, and Equus Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equus Total Return and OFS Credit 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 OFS Credit Company, are associated (or correlated) with Equus Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equus Total Return has no effect on the direction of OFS Credit i.e., OFS Credit and Equus Total go up and down completely randomly.
Pair Corralation between OFS Credit and Equus Total
Assuming the 90 days horizon OFS Credit Company, is expected to generate 0.08 times more return on investment than Equus Total. However, OFS Credit Company, is 12.29 times less risky than Equus Total. It trades about 0.23 of its potential returns per unit of risk. Equus Total Return is currently generating about -0.03 per unit of risk. If you would invest 2,441 in OFS Credit Company, on August 30, 2024 and sell it today you would earn a total of 58.00 from holding OFS Credit Company, or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
OFS Credit Company, vs. Equus Total Return
Performance |
| Timeline |
| OFS Credit , |
| Equus Total Return |
OFS Credit and Equus Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFS Credit and Equus Total
The main advantage of trading using opposite OFS Credit and Equus Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFS Credit position performs unexpectedly, Equus Total 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 Equus Total will offset losses from the drop in Equus Total's long position.| OFS Credit vs. Prospect Capital | OFS Credit vs. State Street | OFS Credit vs. OFS Credit | OFS Credit vs. OFS Credit |
| Equus Total vs. Rand Capital Corp | Equus Total vs. Gabelli Convertible And | Equus Total vs. Mfs Intermediate High | Equus Total vs. RENN Fund |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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