Correlation Between OFS Credit and Binah Capital
Can any of the company-specific risk be diversified away by investing in both OFS Credit and Binah Capital 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 Binah Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFS Credit and Binah Capital Group,, you can compare the effects of market volatilities on OFS Credit and Binah Capital 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 Binah Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFS Credit and Binah Capital.
Diversification Opportunities for OFS Credit and Binah Capital
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OFS and Binah is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding OFS Credit and Binah Capital Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binah Capital Group, 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 Binah Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binah Capital Group, has no effect on the direction of OFS Credit i.e., OFS Credit and Binah Capital go up and down completely randomly.
Pair Corralation between OFS Credit and Binah Capital
Assuming the 90 days horizon OFS Credit is expected to under-perform the Binah Capital. But the preferred stock apears to be less risky and, when comparing its historical volatility, OFS Credit is 65.83 times less risky than Binah Capital. The preferred stock trades about 0.0 of its potential returns per unit of risk. The Binah Capital Group, is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3.40 in Binah Capital Group, on August 27, 2024 and sell it today you would earn a total of 3.59 from holding Binah Capital Group, or generate 105.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
OFS Credit vs. Binah Capital Group,
Performance |
| Timeline |
| OFS Credit |
| Binah Capital Group, |
OFS Credit and Binah Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFS Credit and Binah Capital
The main advantage of trading using opposite OFS Credit and Binah Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFS Credit position performs unexpectedly, Binah Capital 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 Binah Capital will offset losses from the drop in Binah Capital's long position.| OFS Credit vs. Oxford Lane Capital | OFS Credit vs. XOMA Corporation | OFS Credit vs. HUMANA INC | OFS Credit vs. Aquagold International |
| Binah Capital vs. Fomento Economico Mexicano | Binah Capital vs. Diageo PLC ADR | Binah Capital vs. Sweetgreen | Binah Capital vs. RCI Hospitality Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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