Correlation Between Oxford Lane and Apple
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Oxford Lane and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Apple.
Diversification Opportunities for Oxford Lane and Apple
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and Apple is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Oxford Lane i.e., Oxford Lane and Apple go up and down completely randomly.
Pair Corralation between Oxford Lane and Apple
Assuming the 90 days horizon Oxford Lane Capital is expected to under-perform the Apple. But the stock apears to be less risky and, when comparing its historical volatility, Oxford Lane Capital is 2.72 times less risky than Apple. The stock trades about -0.07 of its potential returns per unit of risk. The Apple Inc is currently generating about 0.66 of returns per unit of risk over similar time horizon. If you would invest 22,423 in Apple Inc on September 12, 2024 and sell it today you would earn a total of 2,354 from holding Apple Inc or generate 10.5% 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. Apple Inc
Performance |
| Timeline |
| Oxford Lane Capital |
| Apple Inc |
Oxford Lane and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Apple
The main advantage of trading using opposite Oxford Lane and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Oxford Lane vs. Eagle Point Credit | Oxford Lane vs. B Riley Financial | Oxford Lane vs. Harrow Health 8625 | Oxford Lane vs. Oxford Lane Capital |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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