Correlation Between CLO and OpenLedger

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

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

Diversification Opportunities for CLO and OpenLedger

0.0

Correlation Coefficient

CLO  OpenLedger

Pay attention - limited upside

The 3 months correlation between CLO and OpenLedger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CLO and OpenLedger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpenLedger and CLO 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 CLO are associated (or correlated) with OpenLedger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpenLedger has no effect on the direction of CLO i.e., CLO and OpenLedger go up and down completely randomly.

Pair Corralation between CLO and OpenLedger

If you would invest  0.39  in OpenLedger on July 13, 2025 and sell it today you would earn a total of  35.61  from holding OpenLedger or generate 9060.31% return on investment over 90 days.

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

CLO  vs.  OpenLedger

CLO

Risk-Adjusted Performance

Weakest

Over the last 90 days CLO has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CLO is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

OpenLedger

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in OpenLedger are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, OpenLedger exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CLO and OpenLedger

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

The idea behind CLO and OpenLedger 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.