Correlation Between Pgim Global and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Pgim 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 Pgim 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 Pgim Global High and Oxford Lane Capital, you can compare the effects of market volatilities on Pgim 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 Pgim Global with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Global and Oxford Lane.
Diversification Opportunities for Pgim Global and Oxford Lane
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pgim and Oxford is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Global High 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 Pgim 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 Pgim Global High 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 Pgim Global i.e., Pgim Global and Oxford Lane go up and down completely randomly.
Pair Corralation between Pgim Global and Oxford Lane
Considering the 90-day investment horizon Pgim Global High is expected to generate 0.69 times more return on investment than Oxford Lane. However, Pgim Global High is 1.44 times less risky than Oxford Lane. It trades about 0.13 of its potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.08 per unit of risk. If you would invest 975.00 in Pgim Global High on September 12, 2024 and sell it today you would earn a total of 322.00 from holding Pgim Global High or generate 33.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Pgim Global High vs. Oxford Lane Capital
Performance |
| Timeline |
| Pgim Global High |
| Oxford Lane Capital |
Pgim Global and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Global and Oxford Lane
The main advantage of trading using opposite Pgim Global and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim 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.| Pgim Global vs. Oxford Lane Capital | Pgim Global vs. Orchid Island Capital | Pgim Global vs. Guggenheim Strategic Opportunities | Pgim Global vs. Stone Harbor Emerging |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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