Correlation Between Oxford Lane and Lmp Capital
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Lmp Capital 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 Lmp Capital 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 Lmp Capital And, you can compare the effects of market volatilities on Oxford Lane and Lmp Capital 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 Lmp Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Lmp Capital.
Diversification Opportunities for Oxford Lane and Lmp Capital
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oxford and Lmp is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Lmp Capital And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lmp Capital And 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 Lmp Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lmp Capital And has no effect on the direction of Oxford Lane i.e., Oxford Lane and Lmp Capital go up and down completely randomly.
Pair Corralation between Oxford Lane and Lmp Capital
Given the investment horizon of 90 days Oxford Lane is expected to generate 1.65 times less return on investment than Lmp Capital. But when comparing it to its historical volatility, Oxford Lane Capital is 1.05 times less risky than Lmp Capital. It trades about 0.08 of its potential returns per unit of risk. Lmp Capital And is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,137 in Lmp Capital And on September 12, 2024 and sell it today you would earn a total of 632.00 from holding Lmp Capital And or generate 55.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Oxford Lane Capital vs. Lmp Capital And
Performance |
| Timeline |
| Oxford Lane Capital |
| Lmp Capital And |
Oxford Lane and Lmp Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Lmp Capital
The main advantage of trading using opposite Oxford Lane and Lmp Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Lmp Capital 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 Lmp Capital will offset losses from the drop in Lmp Capital'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 |
| Lmp Capital vs. Oxford Lane Capital | Lmp Capital vs. Orchid Island Capital | Lmp Capital vs. Guggenheim Strategic Opportunities | Lmp Capital 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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