Correlation Between OFAL and Huron Consulting

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

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

Diversification Opportunities for OFAL and Huron Consulting

-0.83

Correlation Coefficient

OFAL  Huron Consulting

Pay attention - limited upside

The 3 months correlation between OFAL and Huron is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding OFAL and Huron Consulting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huron Consulting and OFAL 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 OFAL are associated (or correlated) with Huron Consulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huron Consulting has no effect on the direction of OFAL i.e., OFAL and Huron Consulting go up and down completely randomly.

Pair Corralation between OFAL and Huron Consulting

Given the investment horizon of 90 days OFAL is expected to under-perform the Huron Consulting. In addition to that, OFAL is 2.86 times more volatile than Huron Consulting Group. It trades about -0.1 of its total potential returns per unit of risk. Huron Consulting Group is currently generating about 0.19 per unit of volatility. If you would invest  14,070  in Huron Consulting Group on September 12, 2025 and sell it today you would earn a total of  3,340  from holding Huron Consulting Group or generate 23.74% return on investment over 90 days.

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

OFAL  vs.  Huron Consulting Group

OFAL

Risk-Adjusted Performance

Weakest

Over the last 90 days OFAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Huron Consulting

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Huron Consulting Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Huron Consulting displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OFAL and Huron Consulting

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

The idea behind OFAL and Huron Consulting Group 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.

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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.