Correlation Between Oxford Lane and Atlas Corp
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Atlas Corp 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 Atlas Corp 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 Atlas Corp, you can compare the effects of market volatilities on Oxford Lane and Atlas Corp 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 Atlas Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Atlas Corp.
Diversification Opportunities for Oxford Lane and Atlas Corp
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oxford and Atlas is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Atlas Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Corp 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 Atlas Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Corp has no effect on the direction of Oxford Lane i.e., Oxford Lane and Atlas Corp go up and down completely randomly.
Pair Corralation between Oxford Lane and Atlas Corp
Assuming the 90 days horizon Oxford Lane Capital is expected to under-perform the Atlas Corp. But the stock apears to be less risky and, when comparing its historical volatility, Oxford Lane Capital is 1.21 times less risky than Atlas Corp. The stock trades about -0.12 of its potential returns per unit of risk. The Atlas Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,498 in Atlas Corp on August 27, 2024 and sell it today you would earn a total of 12.00 from holding Atlas Corp or generate 0.48% 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. Atlas Corp
Performance |
| Timeline |
| Oxford Lane Capital |
| Atlas Corp |
Oxford Lane and Atlas Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Atlas Corp
The main advantage of trading using opposite Oxford Lane and Atlas Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Atlas Corp 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 Atlas Corp will offset losses from the drop in Atlas Corp's long position.| Oxford Lane vs. Copa Holdings SA | Oxford Lane vs. United Airlines Holdings | Oxford Lane vs. Delta Air Lines | Oxford Lane vs. SkyWest |
| Atlas Corp vs. Old Dominion Freight | Atlas Corp vs. ArcBest Corp | Atlas Corp vs. Knight Transportation | Atlas Corp vs. Universal Logistics Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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