Correlation Between Munivest Fund and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Munivest Fund 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 Munivest Fund and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Munivest Fund and Oxford Square Capital, you can compare the effects of market volatilities on Munivest Fund 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 Munivest Fund with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Munivest Fund and Oxford Square.
Diversification Opportunities for Munivest Fund and Oxford Square
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Munivest and Oxford is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund 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 Munivest Fund 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 Munivest Fund 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 Munivest Fund i.e., Munivest Fund and Oxford Square go up and down completely randomly.
Pair Corralation between Munivest Fund and Oxford Square
Considering the 90-day investment horizon Munivest Fund is expected to generate 1.6 times more return on investment than Oxford Square. However, Munivest Fund is 1.6 times more volatile than Oxford Square Capital. It trades about 0.09 of its potential returns per unit of risk. Oxford Square Capital is currently generating about -0.03 per unit of risk. If you would invest 718.00 in Munivest Fund on November 28, 2024 and sell it today you would earn a total of 9.00 from holding Munivest Fund or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Munivest Fund vs. Oxford Square Capital
Performance |
| Timeline |
| Munivest Fund |
| Oxford Square Capital |
Munivest Fund and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Munivest Fund and Oxford Square
The main advantage of trading using opposite Munivest Fund and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund 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.| Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniholdings Closed | Munivest Fund vs. Blackrock Muniholdings Quality |
| Oxford Square vs. Oxford Square Capital | Oxford Square vs. Oxford Lane Capital | Oxford Square vs. B Riley Financial | Oxford Square vs. Gladstone Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |