Correlation Between OFS Credit and Tortoise Energy

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

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

Diversification Opportunities for OFS Credit and Tortoise Energy

-0.64

Correlation Coefficient

OFS Credit  Tortoise Energy

Excellent diversification

The 3 months correlation between OFS and Tortoise is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding OFS Credit and Tortoise Energy Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tortoise Energy Infr 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 Tortoise Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tortoise Energy Infr has no effect on the direction of OFS Credit i.e., OFS Credit and Tortoise Energy go up and down completely randomly.

Pair Corralation between OFS Credit and Tortoise Energy

Given the investment horizon of 90 days OFS Credit is expected to under-perform the Tortoise Energy. In addition to that, OFS Credit is 2.31 times more volatile than Tortoise Energy Infrastructure. It trades about -0.12 of its total potential returns per unit of risk. Tortoise Energy Infrastructure is currently generating about 0.08 per unit of volatility. If you would invest  4,173  in Tortoise Energy Infrastructure on August 26, 2025 and sell it today you would earn a total of  172.00  from holding Tortoise Energy Infrastructure or generate 4.12% return on investment over 90 days.

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

OFS Credit  vs.  Tortoise Energy Infrastructure

OFS Credit

Risk-Adjusted Performance

Weakest

Over the last 90 days OFS Credit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Tortoise Energy Infr

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Energy Infrastructure are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Tortoise Energy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with OFS Credit and Tortoise Energy

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

The idea behind OFS Credit and Tortoise Energy Infrastructure 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.