Correlation Between Oxford Lane and Swiss Life
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Swiss Life 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 Swiss Life 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 Swiss Life Holding, you can compare the effects of market volatilities on Oxford Lane and Swiss Life 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 Swiss Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Swiss Life.
Diversification Opportunities for Oxford Lane and Swiss Life
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and Swiss is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding 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 Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of Oxford Lane i.e., Oxford Lane and Swiss Life go up and down completely randomly.
Pair Corralation between Oxford Lane and Swiss Life
Given the investment horizon of 90 days Oxford Lane is expected to generate 2.46 times less return on investment than Swiss Life. But when comparing it to its historical volatility, Oxford Lane Capital is 1.31 times less risky than Swiss Life. It trades about 0.06 of its potential returns per unit of risk. Swiss Life Holding is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,512 in Swiss Life Holding on September 2, 2024 and sell it today you would earn a total of 647.00 from holding Swiss Life Holding or generate 18.42% 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. Swiss Life Holding
Performance |
| Timeline |
| Oxford Lane Capital |
| Swiss Life Holding |
Oxford Lane and Swiss Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Swiss Life
The main advantage of trading using opposite Oxford Lane and Swiss Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Swiss Life 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 Swiss Life will offset losses from the drop in Swiss Life'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 |
| Swiss Life vs. ageas SANV | Swiss Life vs. Athene Holding | Swiss Life vs. Sampo OYJ | Swiss Life vs. Athene Holding |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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