Correlation Between Oxford Lane and Pgim Global
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Pgim 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 Pgim 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 Pgim Global High, you can compare the effects of market volatilities on Oxford Lane and Pgim 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 Pgim Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Pgim Global.
Diversification Opportunities for Oxford Lane and Pgim Global
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oxford and Pgim is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Pgim Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Global High 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 Pgim Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Global High has no effect on the direction of Oxford Lane i.e., Oxford Lane and Pgim Global go up and down completely randomly.
Pair Corralation between Oxford Lane and Pgim Global
Given the investment horizon of 90 days Oxford Lane Capital is expected to under-perform the Pgim Global. But the stock apears to be less risky and, when comparing its historical volatility, Oxford Lane Capital is 1.49 times less risky than Pgim Global. The stock trades about -0.15 of its potential returns per unit of risk. The Pgim Global High is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,278 in Pgim Global High on September 12, 2024 and sell it today you would earn a total of 19.00 from holding Pgim Global High or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oxford Lane Capital vs. Pgim Global High
Performance |
| Timeline |
| Oxford Lane Capital |
| Pgim Global High |
Oxford Lane and Pgim Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Pgim Global
The main advantage of trading using opposite Oxford Lane and Pgim Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Pgim 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 Pgim Global will offset losses from the drop in Pgim 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 |
| Pgim Global vs. Oxford Lane Capital | Pgim Global vs. Orchid Island Capital | Pgim Global vs. Guggenheim Strategic Opportunities | Pgim 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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