Correlation Between Apollo Senior and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Apollo Senior and Oxford Lane 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 Apollo Senior and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Senior Floating and Oxford Lane Capital, you can compare the effects of market volatilities on Apollo Senior and Oxford Lane 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 Apollo Senior with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Senior and Oxford Lane.
Diversification Opportunities for Apollo Senior and Oxford Lane
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apollo and Oxford is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Senior Floating and Oxford Lane Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Lane Capital and Apollo Senior 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 Apollo Senior Floating are associated (or correlated) with Oxford Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Lane Capital has no effect on the direction of Apollo Senior i.e., Apollo Senior and Oxford Lane go up and down completely randomly.
Pair Corralation between Apollo Senior and Oxford Lane
If you would invest 1,486 in Apollo Senior Floating on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Apollo Senior Floating or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Apollo Senior Floating vs. Oxford Lane Capital
Performance |
| Timeline |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oxford Lane Capital |
Apollo Senior and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Senior and Oxford Lane
The main advantage of trading using opposite Apollo Senior and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Senior position performs unexpectedly, Oxford Lane 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 Oxford Lane will offset losses from the drop in Oxford Lane's long position.| Apollo Senior vs. Blackstone Gso Strategic | Apollo Senior vs. First Trust Senior | Apollo Senior vs. BlackRock Floating Rate | Apollo Senior vs. Eaton Vance Senior |
| Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Equity |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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