Correlation Between OFS Credit and Tiptree
Can any of the company-specific risk be diversified away by investing in both OFS Credit and Tiptree 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 Tiptree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFS Credit and Tiptree, you can compare the effects of market volatilities on OFS Credit and Tiptree 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 Tiptree. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFS Credit and Tiptree.
Diversification Opportunities for OFS Credit and Tiptree
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OFS and Tiptree is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding OFS Credit and Tiptree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiptree 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 Tiptree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiptree has no effect on the direction of OFS Credit i.e., OFS Credit and Tiptree go up and down completely randomly.
Pair Corralation between OFS Credit and Tiptree
Given the investment horizon of 90 days OFS Credit is expected to under-perform the Tiptree. But the stock apears to be less risky and, when comparing its historical volatility, OFS Credit is 1.72 times less risky than Tiptree. The stock trades about -0.1 of its potential returns per unit of risk. The Tiptree is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 2,215 in Tiptree on August 18, 2025 and sell it today you would lose (293.00) from holding Tiptree or give up 13.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFS Credit vs. Tiptree
Performance |
| Timeline |
| OFS Credit |
| Tiptree |
OFS Credit and Tiptree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFS Credit and Tiptree
The main advantage of trading using opposite OFS Credit and Tiptree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFS Credit position performs unexpectedly, Tiptree 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 Tiptree will offset losses from the drop in Tiptree's long position.| OFS Credit vs. OFS Capital Corp | OFS Credit vs. BCP Investment Corp | OFS Credit vs. Silvercrest Asset Management | OFS Credit vs. Pearl Diver Credit |
| Tiptree vs. AMERISAFE | Tiptree vs. Employers Holdings | Tiptree vs. Metropolitan Bank Holding | Tiptree vs. Horizon Bancorp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |