Correlation Between Gladstone Investment and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Gladstone 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 Gladstone 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 Gladstone Investment and Oxford Lane Capital, you can compare the effects of market volatilities on Gladstone 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 Gladstone Investment with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Oxford Lane.
Diversification Opportunities for Gladstone Investment and Oxford Lane
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gladstone and Oxford is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment 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 Gladstone 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 Gladstone Investment 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 Gladstone Investment i.e., Gladstone Investment and Oxford Lane go up and down completely randomly.
Pair Corralation between Gladstone Investment and Oxford Lane
Assuming the 90 days horizon Gladstone Investment is expected to under-perform the Oxford Lane. In addition to that, Gladstone Investment is 1.46 times more volatile than Oxford Lane Capital. It trades about -0.03 of its total potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.02 per unit of volatility. If you would invest 2,287 in Oxford Lane Capital on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Oxford Lane Capital or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. Oxford Lane Capital
Performance |
| Timeline |
| Gladstone Investment |
| Oxford Lane Capital |
Gladstone Investment and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Oxford Lane
The main advantage of trading using opposite Gladstone Investment and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone 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.| Gladstone Investment vs. Gladstone Investment | Gladstone Investment vs. B Riley Financial | Gladstone Investment vs. B Riley Financial | Gladstone Investment vs. B Riley Financial, |
| Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. The Gabelli Multimedia | 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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