Correlation Between Oxford Lane and Marygold Companies
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Marygold Companies 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 Marygold Companies 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 Marygold Companies, you can compare the effects of market volatilities on Oxford Lane and Marygold Companies 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 Marygold Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Marygold Companies.
Diversification Opportunities for Oxford Lane and Marygold Companies
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oxford and Marygold is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Marygold Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marygold Companies 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 Marygold Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marygold Companies has no effect on the direction of Oxford Lane i.e., Oxford Lane and Marygold Companies go up and down completely randomly.
Pair Corralation between Oxford Lane and Marygold Companies
Given the investment horizon of 90 days Oxford Lane is expected to generate 2.86 times less return on investment than Marygold Companies. But when comparing it to its historical volatility, Oxford Lane Capital is 13.98 times less risky than Marygold Companies. It trades about 0.11 of its potential returns per unit of risk. Marygold Companies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 162.00 in Marygold Companies on September 2, 2024 and sell it today you would lose (11.00) from holding Marygold Companies or give up 6.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Lane Capital vs. Marygold Companies
Performance |
| Timeline |
| Oxford Lane Capital |
| Marygold Companies |
Oxford Lane and Marygold Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Marygold Companies
The main advantage of trading using opposite Oxford Lane and Marygold Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Marygold Companies 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 Marygold Companies will offset losses from the drop in Marygold Companies' 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 |
| Marygold Companies vs. MFS Investment Grade | Marygold Companies vs. Invesco High Income | Marygold Companies vs. Eaton Vance National | Marygold Companies vs. Nuveen California Select |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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