Correlation Between Fidus Investment and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Fidus Investment 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 Fidus Investment and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidus Investment Corp and Oxford Lane Capital, you can compare the effects of market volatilities on Fidus Investment 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 Fidus Investment with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Oxford Lane.
Diversification Opportunities for Fidus Investment and Oxford Lane
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidus and Oxford is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp 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 Fidus Investment 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 Fidus Investment Corp 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 Fidus Investment i.e., Fidus Investment and Oxford Lane go up and down completely randomly.
Pair Corralation between Fidus Investment and Oxford Lane
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.9 times more return on investment than Oxford Lane. However, Fidus Investment Corp is 1.11 times less risky than Oxford Lane. It trades about 0.11 of its potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.09 per unit of risk. If you would invest 1,794 in Fidus Investment Corp on November 9, 2024 and sell it today you would earn a total of 456.00 from holding Fidus Investment Corp or generate 25.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Oxford Lane Capital
Performance |
| Timeline |
| Fidus Investment Corp |
| Oxford Lane Capital |
Fidus Investment and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Oxford Lane
The main advantage of trading using opposite Fidus Investment and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment 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.| Fidus Investment vs. Golub Capital BDC | Fidus Investment vs. BlackRock TCP Capital | Fidus Investment vs. Carlyle Secured Lending | Fidus Investment vs. Sixth Street Specialty |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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