Correlation Between Carlyle and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Carlyle 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 Carlyle and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Oxford Lane Capital, you can compare the effects of market volatilities on Carlyle 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 Carlyle with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Oxford Lane.
Diversification Opportunities for Carlyle and Oxford Lane
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlyle and Oxford is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group 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 Carlyle 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 Carlyle Group 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 Carlyle i.e., Carlyle and Oxford Lane go up and down completely randomly.
Pair Corralation between Carlyle and Oxford Lane
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 3.14 times more return on investment than Oxford Lane. However, Carlyle is 3.14 times more volatile than Oxford Lane Capital. It trades about 0.28 of its potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.2 per unit of risk. If you would invest 5,022 in Carlyle Group on October 21, 2024 and sell it today you would earn a total of 502.00 from holding Carlyle Group or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Oxford Lane Capital
Performance |
| Timeline |
| Carlyle Group |
| Oxford Lane Capital |
Carlyle and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Oxford Lane
The main advantage of trading using opposite Carlyle and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle 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.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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