Correlation Between Applied Blockchain and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Applied Blockchain 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 Applied Blockchain and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Blockchain and Oxford Lane Capital, you can compare the effects of market volatilities on Applied Blockchain 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 Applied Blockchain with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and Oxford Lane.
Diversification Opportunities for Applied Blockchain and Oxford Lane
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Applied and Oxford is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain 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 Applied Blockchain 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 Applied Blockchain 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 Applied Blockchain i.e., Applied Blockchain and Oxford Lane go up and down completely randomly.
Pair Corralation between Applied Blockchain and Oxford Lane
Given the investment horizon of 90 days Applied Blockchain is expected to generate 16.62 times more return on investment than Oxford Lane. However, Applied Blockchain is 16.62 times more volatile than Oxford Lane Capital. It trades about 0.19 of its potential returns per unit of risk. Oxford Lane Capital is currently generating about -0.03 per unit of risk. If you would invest 827.00 in Applied Blockchain on August 28, 2024 and sell it today you would earn a total of 223.00 from holding Applied Blockchain or generate 26.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Blockchain vs. Oxford Lane Capital
Performance |
| Timeline |
| Applied Blockchain |
| Oxford Lane Capital |
Applied Blockchain and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and Oxford Lane
The main advantage of trading using opposite Applied Blockchain and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain 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.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Dividend | 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 CEOs Directory module to screen CEOs from public companies around the world.
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