Correlation Between Oxford Lane and Glen Burnie
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Glen Burnie 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 Lane and Glen Burnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Lane Capital and Glen Burnie Bancorp, you can compare the effects of market volatilities on Oxford Lane and Glen Burnie 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 Lane with a short position of Glen Burnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Glen Burnie.
Diversification Opportunities for Oxford Lane and Glen Burnie
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxford and Glen is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Glen Burnie Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glen Burnie Bancorp and Oxford Lane 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 Lane Capital are associated (or correlated) with Glen Burnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glen Burnie Bancorp has no effect on the direction of Oxford Lane i.e., Oxford Lane and Glen Burnie go up and down completely randomly.
Pair Corralation between Oxford Lane and Glen Burnie
Assuming the 90 days horizon Oxford Lane Capital is expected to generate 0.22 times more return on investment than Glen Burnie. However, Oxford Lane Capital is 4.6 times less risky than Glen Burnie. It trades about 0.11 of its potential returns per unit of risk. Glen Burnie Bancorp is currently generating about -0.14 per unit of risk. If you would invest 2,217 in Oxford Lane Capital on March 31, 2024 and sell it today you would earn a total of 24.00 from holding Oxford Lane Capital or generate 1.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Oxford Lane Capital vs. Glen Burnie Bancorp
Performance |
Timeline |
Oxford Lane Capital |
Glen Burnie Bancorp |
Oxford Lane and Glen Burnie Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oxford Lane and Glen Burnie
The main advantage of trading using opposite Oxford Lane and Glen Burnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Glen Burnie 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 Glen Burnie will offset losses from the drop in Glen Burnie's long position.Oxford Lane vs. The Gabelli Equity | Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. RiverNorth Specialty Finance | Oxford Lane vs. Tri Continental PFD |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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