Correlation Between Oaktree Specialty and Enova International
Can any of the company-specific risk be diversified away by investing in both Oaktree Specialty and Enova International 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 Specialty and Enova International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oaktree Specialty Lending and Enova International, you can compare the effects of market volatilities on Oaktree Specialty and Enova International 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 Specialty with a short position of Enova International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oaktree Specialty and Enova International.
Diversification Opportunities for Oaktree Specialty and Enova International
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oaktree and Enova is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Oaktree Specialty Lending and Enova International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enova International and Oaktree Specialty 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 Specialty Lending are associated (or correlated) with Enova International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enova International has no effect on the direction of Oaktree Specialty i.e., Oaktree Specialty and Enova International go up and down completely randomly.
Pair Corralation between Oaktree Specialty and Enova International
Given the investment horizon of 90 days Oaktree Specialty Lending is expected to under-perform the Enova International. But the stock apears to be less risky and, when comparing its historical volatility, Oaktree Specialty Lending is 2.14 times less risky than Enova International. The stock trades about 0.0 of its potential returns per unit of risk. The Enova International is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 8,054 in Enova International on August 26, 2024 and sell it today you would earn a total of 2,420 from holding Enova International or generate 30.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oaktree Specialty Lending vs. Enova International
Performance |
| Timeline |
| Oaktree Specialty Lending |
| Enova International |
Oaktree Specialty and Enova International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oaktree Specialty and Enova International
The main advantage of trading using opposite Oaktree Specialty and Enova International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oaktree Specialty position performs unexpectedly, Enova International 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 Enova International will offset losses from the drop in Enova International's long position.| Oaktree Specialty vs. Barings BDC | Oaktree Specialty vs. OneMain Holdings | Oaktree Specialty vs. Runway Growth Finance | Oaktree Specialty vs. Ally Financial |
| Enova International vs. SLM Corp | Enova International vs. Orix Corp Ads | Enova International vs. FirstCash | Enova International vs. Medallion Financial Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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