Correlation Between OFS Credit and OFS Credit
Can any of the company-specific risk be diversified away by investing in both OFS Credit and OFS Credit 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 OFS Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFS Credit and OFS Credit, you can compare the effects of market volatilities on OFS Credit and OFS Credit 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 OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFS Credit and OFS Credit.
Diversification Opportunities for OFS Credit and OFS Credit
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OFS and OFS is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding OFS Credit and OFS Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit 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 OFS Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFS Credit has no effect on the direction of OFS Credit i.e., OFS Credit and OFS Credit go up and down completely randomly.
Pair Corralation between OFS Credit and OFS Credit
Assuming the 90 days horizon OFS Credit is expected to generate 0.92 times more return on investment than OFS Credit. However, OFS Credit is 1.09 times less risky than OFS Credit. It trades about 0.16 of its potential returns per unit of risk. OFS Credit is currently generating about -0.03 per unit of risk. If you would invest 2,369 in OFS Credit on August 24, 2024 and sell it today you would earn a total of 31.00 from holding OFS Credit or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFS Credit vs. OFS Credit
Performance |
| Timeline |
| OFS Credit |
| OFS Credit |
OFS Credit and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFS Credit and OFS Credit
The main advantage of trading using opposite OFS Credit and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFS Credit position performs unexpectedly, OFS Credit 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 OFS Credit will offset losses from the drop in OFS Credit's long position.| OFS Credit vs. OFS Credit | OFS Credit vs. Oxford Lane Capital | OFS Credit vs. Gladstone Land Corp | OFS Credit vs. Eagle Point Income |
| OFS Credit vs. Oxford Lane Capital | OFS Credit vs. OFS Credit | OFS Credit vs. XOMA Corporation | OFS Credit vs. HUMANA INC |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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