Correlation Between Guggenheim Strategic and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Guggenheim Strategic and Oxford Square 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 Guggenheim Strategic and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Strategic Opportunities and Oxford Square Capital, you can compare the effects of market volatilities on Guggenheim Strategic and Oxford Square 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 Guggenheim Strategic with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Strategic and Oxford Square.
Diversification Opportunities for Guggenheim Strategic and Oxford Square
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guggenheim and Oxford is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Strategic Opportuni and Oxford Square Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Square Capital and Guggenheim Strategic 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 Guggenheim Strategic Opportunities are associated (or correlated) with Oxford Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Square Capital has no effect on the direction of Guggenheim Strategic i.e., Guggenheim Strategic and Oxford Square go up and down completely randomly.
Pair Corralation between Guggenheim Strategic and Oxford Square
Considering the 90-day investment horizon Guggenheim Strategic Opportunities is expected to generate 0.39 times more return on investment than Oxford Square. However, Guggenheim Strategic Opportunities is 2.58 times less risky than Oxford Square. It trades about 0.14 of its potential returns per unit of risk. Oxford Square Capital is currently generating about -0.32 per unit of risk. If you would invest 1,559 in Guggenheim Strategic Opportunities on August 29, 2024 and sell it today you would earn a total of 21.00 from holding Guggenheim Strategic Opportunities or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Strategic Opportuni vs. Oxford Square Capital
Performance |
| Timeline |
| Guggenheim Strategic |
| Oxford Square Capital |
Guggenheim Strategic and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Strategic and Oxford Square
The main advantage of trading using opposite Guggenheim Strategic and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Strategic position performs unexpectedly, Oxford Square 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 Square will offset losses from the drop in Oxford Square's long position.| Guggenheim Strategic vs. Eaton Vance National | Guggenheim Strategic vs. Invesco High Income | Guggenheim Strategic vs. Blackrock Muniholdings Ny | Guggenheim Strategic vs. Nuveen California Select |
| Oxford Square vs. Eagle Point Credit | Oxford Square vs. Cornerstone Strategic Return | Oxford Square vs. Cornerstone Strategic Value | Oxford Square vs. Guggenheim Strategic Opportunities |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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