Correlation Between Prosperity Bancshares and Oaktree Specialty
Can any of the company-specific risk be diversified away by investing in both Prosperity Bancshares and Oaktree Specialty 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 Prosperity Bancshares and Oaktree Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosperity Bancshares and Oaktree Specialty Lending, you can compare the effects of market volatilities on Prosperity Bancshares and Oaktree Specialty 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 Prosperity Bancshares with a short position of Oaktree Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosperity Bancshares and Oaktree Specialty.
Diversification Opportunities for Prosperity Bancshares and Oaktree Specialty
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prosperity and Oaktree is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Prosperity Bancshares and Oaktree Specialty Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree Specialty Lending and Prosperity Bancshares 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 Prosperity Bancshares are associated (or correlated) with Oaktree Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree Specialty Lending has no effect on the direction of Prosperity Bancshares i.e., Prosperity Bancshares and Oaktree Specialty go up and down completely randomly.
Pair Corralation between Prosperity Bancshares and Oaktree Specialty
Allowing for the 90-day total investment horizon Prosperity Bancshares is expected to generate 1.43 times more return on investment than Oaktree Specialty. However, Prosperity Bancshares is 1.43 times more volatile than Oaktree Specialty Lending. It trades about 0.17 of its potential returns per unit of risk. Oaktree Specialty Lending is currently generating about -0.08 per unit of risk. If you would invest 5,997 in Prosperity Bancshares on September 1, 2024 and sell it today you would earn a total of 2,376 from holding Prosperity Bancshares or generate 39.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prosperity Bancshares vs. Oaktree Specialty Lending
Performance |
| Timeline |
| Prosperity Bancshares |
| Oaktree Specialty Lending |
Prosperity Bancshares and Oaktree Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosperity Bancshares and Oaktree Specialty
The main advantage of trading using opposite Prosperity Bancshares and Oaktree Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosperity Bancshares position performs unexpectedly, Oaktree Specialty 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 Oaktree Specialty will offset losses from the drop in Oaktree Specialty's long position.| Prosperity Bancshares vs. Heartland Financial USA | Prosperity Bancshares vs. Heritage Commerce Corp | Prosperity Bancshares vs. Business First Bancshares | Prosperity Bancshares vs. German American Bancorp |
| Oaktree Specialty vs. Barings BDC | Oaktree Specialty vs. OneMain Holdings | Oaktree Specialty vs. Runway Growth Finance | Oaktree Specialty vs. Ally Financial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |