Correlation Between OFS Credit and Innventure,

Can any of the company-specific risk be diversified away by investing in both OFS Credit and Innventure, 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 OFS Credit and Innventure, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OFS Credit and Innventure,, you can compare the effects of market volatilities on OFS Credit and Innventure, 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 OFS Credit with a short position of Innventure,. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFS Credit and Innventure,.

Diversification Opportunities for OFS Credit and Innventure,

0.07

Correlation Coefficient

OFS Credit  Innventure,

Significant diversification

The 3 months correlation between OFS and Innventure, is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding OFS Credit and Innventure, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innventure, and OFS Credit 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 OFS Credit are associated (or correlated) with Innventure,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innventure, has no effect on the direction of OFS Credit i.e., OFS Credit and Innventure, go up and down completely randomly.

Pair Corralation between OFS Credit and Innventure,

Assuming the 90 days horizon OFS Credit is expected to generate 708.95 times less return on investment than Innventure,. But when comparing it to its historical volatility, OFS Credit is 9.3 times less risky than Innventure,. It trades about 0.0 of its potential returns per unit of risk. Innventure, is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  1,066  in Innventure, on September 22, 2024 and sell it today you would earn a total of  300.00  from holding Innventure, or generate 28.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

OFS Credit  vs.  Innventure,

OFS Credit

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OFS Credit are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, OFS Credit is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Innventure,

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Innventure, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Innventure, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OFS Credit and Innventure,

The main advantage of trading using opposite OFS Credit and Innventure, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFS Credit position performs unexpectedly, Innventure, 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 Innventure, will offset losses from the drop in Innventure,'s long position.

The idea behind OFS Credit and Innventure, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.