Correlation Between Blackrock Muniyield and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield 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 Blackrock Muniyield and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniyield Mi and Oxford Lane Capital, you can compare the effects of market volatilities on Blackrock Muniyield 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 Blackrock Muniyield with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Oxford Lane.
Diversification Opportunities for Blackrock Muniyield and Oxford Lane
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Oxford is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield Mi 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 Blackrock Muniyield 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 Blackrock Muniyield Mi 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 Blackrock Muniyield i.e., Blackrock Muniyield and Oxford Lane go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Oxford Lane
Considering the 90-day investment horizon Blackrock Muniyield Mi is expected to generate 0.61 times more return on investment than Oxford Lane. However, Blackrock Muniyield Mi is 1.65 times less risky than Oxford Lane. It trades about 0.2 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 1,153 in Blackrock Muniyield Mi on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Blackrock Muniyield Mi or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Blackrock Muniyield Mi vs. Oxford Lane Capital
Performance |
| Timeline |
| Blackrock Muniyield |
| Oxford Lane Capital |
Blackrock Muniyield and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Oxford Lane
The main advantage of trading using opposite Blackrock Muniyield and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield 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.| Blackrock Muniyield vs. John Hancock Income | Blackrock Muniyield vs. MFS High Income | Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Blackrock Muniholdings Closed |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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