Correlation Between Oxford Lane and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Aberdeen Global 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 Oxford Lane and Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Lane Capital and Aberdeen Global Dynamic, you can compare the effects of market volatilities on Oxford Lane and Aberdeen Global 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 Oxford Lane with a short position of Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Aberdeen Global.
Diversification Opportunities for Oxford Lane and Aberdeen Global
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oxford and Aberdeen is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Aberdeen Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Dynamic and Oxford Lane 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 Oxford Lane Capital are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Dynamic has no effect on the direction of Oxford Lane i.e., Oxford Lane and Aberdeen Global go up and down completely randomly.
Pair Corralation between Oxford Lane and Aberdeen Global
Given the investment horizon of 90 days Oxford Lane Capital is expected to generate 1.02 times more return on investment than Aberdeen Global. However, Oxford Lane is 1.02 times more volatile than Aberdeen Global Dynamic. It trades about 0.08 of its potential returns per unit of risk. Aberdeen Global Dynamic is currently generating about 0.07 per unit of risk. If you would invest 403.00 in Oxford Lane Capital on September 12, 2024 and sell it today you would earn a total of 121.50 from holding Oxford Lane Capital or generate 30.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Oxford Lane Capital vs. Aberdeen Global Dynamic
Performance |
| Timeline |
| Oxford Lane Capital |
| Aberdeen Global Dynamic |
Oxford Lane and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Aberdeen Global
The main advantage of trading using opposite Oxford Lane and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| Oxford Lane vs. Capital Southwest | Oxford Lane vs. XAI Octagon Floating | Oxford Lane vs. Cornerstone Strategic Return | Oxford Lane vs. Cornerstone Strategic Value |
| Aberdeen Global vs. Oxford Lane Capital | Aberdeen Global vs. Orchid Island Capital | Aberdeen Global vs. Guggenheim Strategic Opportunities | Aberdeen Global vs. Stone Harbor Emerging |
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.
Other Complementary Tools
| 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 | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |