Correlation Between OFS Credit and Gabelli Equity
Can any of the company-specific risk be diversified away by investing in both OFS Credit and Gabelli Equity 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 Gabelli Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFS Credit and The Gabelli Equity, you can compare the effects of market volatilities on OFS Credit and Gabelli Equity 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 Gabelli Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFS Credit and Gabelli Equity.
Diversification Opportunities for OFS Credit and Gabelli Equity
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OFS and Gabelli is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding OFS Credit and The Gabelli Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Equity 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 are associated (or correlated) with Gabelli Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Equity has no effect on the direction of OFS Credit i.e., OFS Credit and Gabelli Equity go up and down completely randomly.
Pair Corralation between OFS Credit and Gabelli Equity
Assuming the 90 days horizon OFS Credit is expected to generate 1.63 times more return on investment than Gabelli Equity. However, OFS Credit is 1.63 times more volatile than The Gabelli Equity. It trades about 0.08 of its potential returns per unit of risk. The Gabelli Equity is currently generating about -0.12 per unit of risk. If you would invest 2,374 in OFS Credit on September 13, 2024 and sell it today you would earn a total of 16.00 from holding OFS Credit or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFS Credit vs. The Gabelli Equity
Performance |
| Timeline |
| OFS Credit |
| Gabelli Equity |
OFS Credit and Gabelli Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFS Credit and Gabelli Equity
The main advantage of trading using opposite OFS Credit and Gabelli Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFS Credit position performs unexpectedly, Gabelli Equity 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 Gabelli Equity will offset losses from the drop in Gabelli Equity's long position.| OFS Credit vs. The Gabelli Equity | OFS Credit vs. The Gabelli Equity | OFS Credit vs. General American Investors | OFS Credit vs. The Gabelli Utility |
| Gabelli Equity vs. Oxford Lane Capital | Gabelli Equity vs. Gladstone Commercial Corp | Gabelli Equity vs. New York Mortgage | Gabelli Equity vs. New York Mortgage |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |