Correlation Between BlackRock Core and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both BlackRock Core 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 BlackRock Core and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Core Bond and Oxford Lane Capital, you can compare the effects of market volatilities on BlackRock Core 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 BlackRock Core with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Core and Oxford Lane.
Diversification Opportunities for BlackRock Core and Oxford Lane
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BlackRock and Oxford is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Core Bond 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 BlackRock Core 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 BlackRock Core Bond 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 BlackRock Core i.e., BlackRock Core and Oxford Lane go up and down completely randomly.
Pair Corralation between BlackRock Core and Oxford Lane
Considering the 90-day investment horizon BlackRock Core Bond is expected to under-perform the Oxford Lane. In addition to that, BlackRock Core is 1.34 times more volatile than Oxford Lane Capital. It trades about -0.05 of its total potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.11 per unit of volatility. If you would invest 514.00 in Oxford Lane Capital on August 30, 2024 and sell it today you would earn a total of 8.00 from holding Oxford Lane Capital or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BlackRock Core Bond vs. Oxford Lane Capital
Performance |
| Timeline |
| BlackRock Core Bond |
| Oxford Lane Capital |
BlackRock Core and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock Core and Oxford Lane
The main advantage of trading using opposite BlackRock Core and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Core 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.| BlackRock Core vs. Nuveen Floating Rate | BlackRock Core vs. Blackrock Muni Intermediate | BlackRock Core vs. Eaton Vance Senior | BlackRock Core vs. Virtus Global Multi |
| Oxford Lane vs. Capital Southwest | Oxford Lane vs. XAI Octagon Floating | Oxford Lane vs. Cornerstone Strategic Return | Oxford Lane vs. Cornerstone Strategic Value |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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