Correlation Between Blackrock Debt and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Blackrock Debt 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 Debt 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 Debt Strategies and Oxford Lane Capital, you can compare the effects of market volatilities on Blackrock Debt 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 Debt with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Debt and Oxford Lane.
Diversification Opportunities for Blackrock Debt and Oxford Lane
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackrock and Oxford is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Debt Strategies 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 Debt 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 Debt Strategies 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 Debt i.e., Blackrock Debt and Oxford Lane go up and down completely randomly.
Pair Corralation between Blackrock Debt and Oxford Lane
Considering the 90-day investment horizon Blackrock Debt Strategies is expected to under-perform the Oxford Lane. But the fund apears to be less risky and, when comparing its historical volatility, Blackrock Debt Strategies is 1.14 times less risky than Oxford Lane. The fund trades about -0.02 of its potential returns per unit of risk. The Oxford Lane Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 502.00 in Oxford Lane Capital on October 22, 2024 and sell it today you would earn a total of 6.00 from holding Oxford Lane Capital or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Blackrock Debt Strategies vs. Oxford Lane Capital
Performance |
| Timeline |
| Blackrock Debt Strategies |
| Oxford Lane Capital |
Blackrock Debt and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Debt and Oxford Lane
The main advantage of trading using opposite Blackrock Debt and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Debt 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 Debt vs. Blackrock Floating Rate | Blackrock Debt vs. Pioneer Floating Rate | Blackrock Debt vs. Eaton Vance Senior | Blackrock Debt vs. Eaton Vance Senior |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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