Correlation Between Tri Continental and OFG Bancorp

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

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

Diversification Opportunities for Tri Continental and OFG Bancorp

-0.48

Correlation Coefficient

Tri Continental  OFG Bancorp

Very good diversification

The 3 months correlation between Tri and OFG is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tri Continental Closed and OFG Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFG Bancorp and Tri Continental 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 Tri Continental Closed are associated (or correlated) with OFG Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFG Bancorp has no effect on the direction of Tri Continental i.e., Tri Continental and OFG Bancorp go up and down completely randomly.

Pair Corralation between Tri Continental and OFG Bancorp

Allowing for the 90-day total investment horizon Tri Continental Closed is expected to generate 0.35 times more return on investment than OFG Bancorp. However, Tri Continental Closed is 2.88 times less risky than OFG Bancorp. It trades about 0.11 of its potential returns per unit of risk. OFG Bancorp is currently generating about -0.08 per unit of risk. If you would invest  3,329  in Tri Continental Closed on September 5, 2025 and sell it today you would earn a total of  128.00  from holding Tri Continental Closed or generate 3.84% return on investment over 90 days.

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

Tri Continental Closed  vs.  OFG Bancorp

Tri Continental Closed

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Tri Continental Closed are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Tri Continental is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

OFG Bancorp

Risk-Adjusted Performance

Weakest

Over the last 90 days OFG Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Tri Continental and OFG Bancorp

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

The idea behind Tri Continental Closed and OFG Bancorp 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.