Correlation Between GAMCO Global and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both GAMCO Global 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 GAMCO Global and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMCO Global Gold and Oxford Lane Capital, you can compare the effects of market volatilities on GAMCO Global 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 GAMCO Global with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Global and Oxford Lane.
Diversification Opportunities for GAMCO Global and Oxford Lane
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between GAMCO and Oxford is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold 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 GAMCO Global 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 GAMCO Global Gold 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 GAMCO Global i.e., GAMCO Global and Oxford Lane go up and down completely randomly.
Pair Corralation between GAMCO Global and Oxford Lane
Assuming the 90 days trading horizon GAMCO Global is expected to generate 1.51 times less return on investment than Oxford Lane. In addition to that, GAMCO Global is 2.9 times more volatile than Oxford Lane Capital. It trades about 0.02 of its total potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.08 per unit of volatility. If you would invest 1,980 in Oxford Lane Capital on August 31, 2024 and sell it today you would earn a total of 429.00 from holding Oxford Lane Capital or generate 21.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.56% |
| Values | Daily Returns |
GAMCO Global Gold vs. Oxford Lane Capital
Performance |
| Timeline |
| GAMCO Global Gold |
| Oxford Lane Capital |
GAMCO Global and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Global and Oxford Lane
The main advantage of trading using opposite GAMCO Global and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Global 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.| GAMCO Global vs. The Gabelli Equity | GAMCO Global vs. The Gabelli Equity | GAMCO Global vs. The Gabelli Utility | GAMCO Global vs. Bancroft Fund |
| Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Gladstone Commercial Corp | Oxford Lane vs. New York Mortgage | Oxford Lane vs. New York Mortgage |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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