Correlation Between OFS Credit and Atlas Corp

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

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

Diversification Opportunities for OFS Credit and Atlas Corp

0.5

Correlation Coefficient

OFS Credit  Atlas Corp

Very weak diversification

The 3 months correlation between OFS and Atlas is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding OFS Credit and Atlas Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Corp 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 Atlas Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Corp has no effect on the direction of OFS Credit i.e., OFS Credit and Atlas Corp go up and down completely randomly.

Pair Corralation between OFS Credit and Atlas Corp

If you would invest  2,461  in OFS Credit on September 13, 2025 and sell it today you would earn a total of  37.00  from holding OFS Credit or generate 1.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

OFS Credit  vs.  Atlas Corp

OFS Credit

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in OFS Credit are ranked lower than 7 (%) 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 latest stock price disarray, may contribute to short-term losses for the investors.

Atlas Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Atlas Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Atlas Corp is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with OFS Credit and Atlas Corp

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

The idea behind OFS Credit and Atlas Corp 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.