Correlation Between Brookfield Asset and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Brookfield Asset 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 Brookfield Asset and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Asset Management and Oxford Lane Capital, you can compare the effects of market volatilities on Brookfield Asset 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 Brookfield Asset with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Asset and Oxford Lane.
Diversification Opportunities for Brookfield Asset and Oxford Lane
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brookfield and Oxford is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Asset Management 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 Brookfield Asset 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 Brookfield Asset Management 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 Brookfield Asset i.e., Brookfield Asset and Oxford Lane go up and down completely randomly.
Pair Corralation between Brookfield Asset and Oxford Lane
If you would invest 2,261 in Oxford Lane Capital on October 20, 2024 and sell it today you would earn a total of 24.00 from holding Oxford Lane Capital or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Brookfield Asset Management vs. Oxford Lane Capital
Performance |
| Timeline |
| Brookfield Asset Man |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oxford Lane Capital |
Brookfield Asset and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Asset and Oxford Lane
The main advantage of trading using opposite Brookfield Asset and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Asset 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.| Brookfield Asset vs. AGF Management Limited | Brookfield Asset vs. Nuveen New York | Brookfield Asset vs. European Equity Closed | Brookfield Asset vs. Nuveen New York |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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