Correlation Between NYSE Composite and Oxford Square
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Oxford Square Capital, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Oxford Square.
Diversification Opportunities for NYSE Composite and Oxford Square
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Oxford is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Oxford Square go up and down completely randomly.
Pair Corralation between NYSE Composite and Oxford Square
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.64 times more return on investment than Oxford Square. However, NYSE Composite is 2.64 times more volatile than Oxford Square Capital. It trades about 0.26 of its potential returns per unit of risk. Oxford Square Capital is currently generating about 0.15 per unit of risk. If you would invest 1,945,669 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 75,313 from holding NYSE Composite or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Oxford Square Capital
Performance |
| Timeline |
NYSE Composite and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with NYSE Composite and Oxford Square
The main advantage of trading using opposite NYSE Composite and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |