Correlation Between Oxford Lane and Gabelli Utility
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Gabelli Utility 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 Gabelli Utility 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 Gabelli Utility Closed, you can compare the effects of market volatilities on Oxford Lane and Gabelli Utility 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 Gabelli Utility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Gabelli Utility.
Diversification Opportunities for Oxford Lane and Gabelli Utility
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oxford and Gabelli is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Gabelli Utility Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Utility Closed 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 Gabelli Utility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Utility Closed has no effect on the direction of Oxford Lane i.e., Oxford Lane and Gabelli Utility go up and down completely randomly.
Pair Corralation between Oxford Lane and Gabelli Utility
Given the investment horizon of 90 days Oxford Lane Capital is expected to generate 0.73 times more return on investment than Gabelli Utility. However, Oxford Lane Capital is 1.37 times less risky than Gabelli Utility. It trades about 0.11 of its potential returns per unit of risk. Gabelli Utility Closed is currently generating about 0.01 per unit of risk. If you would invest 408.00 in Oxford Lane Capital on September 12, 2024 and sell it today you would earn a total of 115.00 from holding Oxford Lane Capital or generate 28.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Oxford Lane Capital vs. Gabelli Utility Closed
Performance |
| Timeline |
| Oxford Lane Capital |
| Gabelli Utility Closed |
Oxford Lane and Gabelli Utility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Gabelli Utility
The main advantage of trading using opposite Oxford Lane and Gabelli Utility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Gabelli Utility 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 Gabelli Utility will offset losses from the drop in Gabelli Utility'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 |
| Gabelli Utility vs. Oxford Lane Capital | Gabelli Utility vs. Orchid Island Capital | Gabelli Utility vs. Guggenheim Strategic Opportunities | Gabelli Utility 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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