Correlation Between OFG Bancorp and WisdomTree
Can any of the company-specific risk be diversified away by investing in both OFG Bancorp and WisdomTree 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 OFG Bancorp and WisdomTree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFG Bancorp and WisdomTree, you can compare the effects of market volatilities on OFG Bancorp and WisdomTree 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 OFG Bancorp with a short position of WisdomTree. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFG Bancorp and WisdomTree.
Diversification Opportunities for OFG Bancorp and WisdomTree
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OFG and WisdomTree is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding OFG Bancorp and WisdomTree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree and OFG Bancorp 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 OFG Bancorp are associated (or correlated) with WisdomTree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree has no effect on the direction of OFG Bancorp i.e., OFG Bancorp and WisdomTree go up and down completely randomly.
Pair Corralation between OFG Bancorp and WisdomTree
Considering the 90-day investment horizon OFG Bancorp is expected to generate 2.91 times less return on investment than WisdomTree. But when comparing it to its historical volatility, OFG Bancorp is 1.33 times less risky than WisdomTree. It trades about 0.23 of its potential returns per unit of risk. WisdomTree is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 1,100 in WisdomTree on September 26, 2025 and sell it today you would earn a total of 155.00 from holding WisdomTree or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFG Bancorp vs. WisdomTree
Performance |
| Timeline |
| OFG Bancorp |
| WisdomTree |
OFG Bancorp and WisdomTree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFG Bancorp and WisdomTree
The main advantage of trading using opposite OFG Bancorp and WisdomTree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFG Bancorp position performs unexpectedly, WisdomTree 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 WisdomTree will offset losses from the drop in WisdomTree's long position.| OFG Bancorp vs. City Holding | OFG Bancorp vs. Northwest Bancshares | OFG Bancorp vs. Nicolet Bankshares | OFG Bancorp vs. First Commonwealth Financial |
| WisdomTree vs. Acadian Asset Management | WisdomTree vs. Tri Continental Closed | WisdomTree vs. Grab Holdings | WisdomTree vs. Oxford Lane Capital |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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