Correlation Between Harrow Health and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Harrow Health 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 Harrow Health and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harrow Health 8625 and Oxford Lane Capital, you can compare the effects of market volatilities on Harrow Health 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 Harrow Health with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harrow Health and Oxford Lane.
Diversification Opportunities for Harrow Health and Oxford Lane
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Harrow and Oxford is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health 8625 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 Harrow Health 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 Harrow Health 8625 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 Harrow Health i.e., Harrow Health and Oxford Lane go up and down completely randomly.
Pair Corralation between Harrow Health and Oxford Lane
Assuming the 90 days horizon Harrow Health 8625 is expected to generate 1.15 times more return on investment than Oxford Lane. However, Harrow Health is 1.15 times more volatile than Oxford Lane Capital. It trades about 0.13 of its potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.1 per unit of risk. If you would invest 2,187 in Harrow Health 8625 on August 24, 2024 and sell it today you would earn a total of 356.00 from holding Harrow Health 8625 or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harrow Health 8625 vs. Oxford Lane Capital
Performance |
| Timeline |
| Harrow Health 8625 |
| Oxford Lane Capital |
Harrow Health and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harrow Health and Oxford Lane
The main advantage of trading using opposite Harrow Health and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harrow Health 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.| Harrow Health vs. Babcock Wilcox Enterprises, | Harrow Health vs. Babcock Wilcox Enterprises | Harrow Health vs. B Riley Financial | Harrow Health vs. SiriusPoint |
| Oxford Lane vs. Eagle Point Credit | Oxford Lane vs. B Riley Financial | Oxford Lane vs. Harrow Health 8625 | Oxford Lane vs. Oxford Lane Capital |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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