Correlation Between Fortress Biotech and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech 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 Fortress Biotech and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech Pref and Oxford Lane Capital, you can compare the effects of market volatilities on Fortress Biotech 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 Fortress Biotech with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Oxford Lane.
Diversification Opportunities for Fortress Biotech and Oxford Lane
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fortress and Oxford is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech Pref 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 Fortress Biotech 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 Fortress Biotech Pref 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 Fortress Biotech i.e., Fortress Biotech and Oxford Lane go up and down completely randomly.
Pair Corralation between Fortress Biotech and Oxford Lane
If you would invest 655.00 in Fortress Biotech Pref on October 22, 2024 and sell it today you would earn a total of 43.00 from holding Fortress Biotech Pref or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Fortress Biotech Pref vs. Oxford Lane Capital
Performance |
| Timeline |
| Fortress Biotech Pref |
| Oxford Lane Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortress Biotech and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Oxford Lane
The main advantage of trading using opposite Fortress Biotech and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech 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.| Fortress Biotech vs. Checkpoint Therapeutics | Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Reviva Pharmaceuticals Holdings | Fortress Biotech vs. Kodiak Sciences |
| Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Equity | Oxford Lane vs. Virtus AllianzGI Convertible | 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |