Correlation Between Oxford Lane and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Fidus Investment 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 Fidus Investment 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 Fidus Investment Corp, you can compare the effects of market volatilities on Oxford Lane and Fidus Investment 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 Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Fidus Investment.
Diversification Opportunities for Oxford Lane and Fidus Investment
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oxford and Fidus is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Fidus Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidus Investment Corp 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 Fidus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidus Investment Corp has no effect on the direction of Oxford Lane i.e., Oxford Lane and Fidus Investment go up and down completely randomly.
Pair Corralation between Oxford Lane and Fidus Investment
Given the investment horizon of 90 days Oxford Lane is expected to generate 1.09 times less return on investment than Fidus Investment. In addition to that, Oxford Lane is 1.11 times more volatile than Fidus Investment Corp. It trades about 0.09 of its total potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.11 per unit of volatility. If you would invest 1,794 in Fidus Investment Corp on November 9, 2024 and sell it today you would earn a total of 456.00 from holding Fidus Investment Corp or generate 25.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Lane Capital vs. Fidus Investment Corp
Performance |
| Timeline |
| Oxford Lane Capital |
| Fidus Investment Corp |
Oxford Lane and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Fidus Investment
The main advantage of trading using opposite Oxford Lane and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Fidus Investment 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 Fidus Investment will offset losses from the drop in Fidus Investment'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 |
| Fidus Investment vs. Golub Capital BDC | Fidus Investment vs. BlackRock TCP Capital | Fidus Investment vs. Carlyle Secured Lending | Fidus Investment vs. Sixth Street Specialty |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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