Correlation Between Bank First and Oaktree Specialty
Can any of the company-specific risk be diversified away by investing in both Bank First 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 Bank First and Oaktree Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank First National and Oaktree Specialty Lending, you can compare the effects of market volatilities on Bank First 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 Bank First with a short position of Oaktree Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank First and Oaktree Specialty.
Diversification Opportunities for Bank First and Oaktree Specialty
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Oaktree is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bank First National 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 Bank First 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 Bank First National 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 Bank First i.e., Bank First and Oaktree Specialty go up and down completely randomly.
Pair Corralation between Bank First and Oaktree Specialty
Considering the 90-day investment horizon Bank First is expected to generate 2.5 times less return on investment than Oaktree Specialty. In addition to that, Bank First is 1.73 times more volatile than Oaktree Specialty Lending. It trades about 0.0 of its total potential returns per unit of risk. Oaktree Specialty Lending is currently generating about 0.01 per unit of volatility. If you would invest 1,324 in Oaktree Specialty Lending on August 21, 2025 and sell it today you would earn a total of 9.00 from holding Oaktree Specialty Lending or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank First National vs. Oaktree Specialty Lending
Performance |
| Timeline |
| Bank First National |
| Oaktree Specialty Lending |
Bank First and Oaktree Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank First and Oaktree Specialty
The main advantage of trading using opposite Bank First and Oaktree Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank First 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.| Bank First vs. Dime Community Bancshares | Bank First vs. Byline Bancorp | Bank First vs. ConnectOne Bancorp | Bank First vs. Washington Federal |
| Oaktree Specialty vs. Navient Corp | Oaktree Specialty vs. Goldman Sachs BDC | Oaktree Specialty vs. Lufax Holding | Oaktree Specialty vs. Prospect 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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