Correlation Between Security National and OFS Credit
Can any of the company-specific risk be diversified away by investing in both Security National 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 Security National and OFS Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security National Financial and OFS Credit, you can compare the effects of market volatilities on Security National 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 Security National with a short position of OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security National and OFS Credit.
Diversification Opportunities for Security National and OFS Credit
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Security and OFS is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Security National Financial and OFS Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit and Security National 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 Security National Financial 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 Security National i.e., Security National and OFS Credit go up and down completely randomly.
Pair Corralation between Security National and OFS Credit
Assuming the 90 days horizon Security National Financial is expected to generate 2.2 times more return on investment than OFS Credit. However, Security National is 2.2 times more volatile than OFS Credit. It trades about 0.1 of its potential returns per unit of risk. OFS Credit is currently generating about 0.08 per unit of risk. If you would invest 783.00 in Security National Financial on November 9, 2024 and sell it today you would earn a total of 563.00 from holding Security National Financial or generate 71.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Security National Financial vs. OFS Credit
Performance |
| Timeline |
| Security National |
| OFS Credit |
Security National and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security National and OFS Credit
The main advantage of trading using opposite Security National and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security National 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.| Security National vs. Guild Holdings Co | Security National vs. Encore Capital Group | Security National vs. PennyMac Finl Svcs | Security National vs. CNFinance Holdings |
| OFS Credit vs. WhiteHorse Finance | OFS Credit vs. Monroe Capital Corp | OFS Credit vs. Portman Ridge Finance | OFS Credit vs. Fidus Investment 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance |