Correlation Between Navient Corp and Oaktree Specialty
Can any of the company-specific risk be diversified away by investing in both Navient Corp 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 Navient Corp and Oaktree Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navient Corp and Oaktree Specialty Lending, you can compare the effects of market volatilities on Navient Corp 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 Navient Corp with a short position of Oaktree Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navient Corp and Oaktree Specialty.
Diversification Opportunities for Navient Corp and Oaktree Specialty
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Navient and Oaktree is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Navient Corp 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 Navient Corp 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 Navient Corp 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 Navient Corp i.e., Navient Corp and Oaktree Specialty go up and down completely randomly.
Pair Corralation between Navient Corp and Oaktree Specialty
Given the investment horizon of 90 days Navient Corp is expected to generate 1.17 times less return on investment than Oaktree Specialty. In addition to that, Navient Corp is 1.7 times more volatile than Oaktree Specialty Lending. It trades about 0.01 of its total potential returns per unit of risk. Oaktree Specialty Lending is currently generating about 0.03 per unit of volatility. If you would invest 1,648 in Oaktree Specialty Lending on February 23, 2024 and sell it today you would earn a total of 247.00 from holding Oaktree Specialty Lending or generate 14.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Navient Corp vs. Oaktree Specialty Lending
Performance |
Timeline |
Navient Corp |
Oaktree Specialty Lending |
Navient Corp and Oaktree Specialty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Navient Corp and Oaktree Specialty
The main advantage of trading using opposite Navient Corp and Oaktree Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navient Corp 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.Navient Corp vs. Barings BDC | Navient Corp vs. OneMain Holdings | Navient Corp vs. Runway Growth Finance | Navient Corp vs. Ally Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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