Correlation Between Oxford Square and Associated Capital
Can any of the company-specific risk be diversified away by investing in both Oxford Square and Associated Capital 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 Oxford Square and Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Square Capital and Associated Capital Group, you can compare the effects of market volatilities on Oxford Square and Associated Capital 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 Oxford Square with a short position of Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Square and Associated Capital.
Diversification Opportunities for Oxford Square and Associated Capital
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and Associated is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Square Capital and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital and Oxford Square 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 Oxford Square Capital are associated (or correlated) with Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Oxford Square i.e., Oxford Square and Associated Capital go up and down completely randomly.
Pair Corralation between Oxford Square and Associated Capital
Given the investment horizon of 90 days Oxford Square Capital is expected to generate 0.97 times more return on investment than Associated Capital. However, Oxford Square Capital is 1.03 times less risky than Associated Capital. It trades about 0.01 of its potential returns per unit of risk. Associated Capital Group is currently generating about -0.01 per unit of risk. If you would invest 307.00 in Oxford Square Capital on February 21, 2024 and sell it today you would earn a total of 4.00 from holding Oxford Square Capital or generate 1.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Oxford Square Capital vs. Associated Capital Group
Performance |
Timeline |
Oxford Square Capital |
Associated Capital |
Oxford Square and Associated Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oxford Square and Associated Capital
The main advantage of trading using opposite Oxford Square and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Square position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.Oxford Square vs. Eagle Point Credit | Oxford Square vs. Cornerstone Strategic Return | Oxford Square vs. Cornerstone Strategic Value | Oxford Square vs. Guggenheim Strategic Opportunities |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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