Correlation Between Oxford Lane and TRINL
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and TRINL 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 TRINL 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 TRINL, you can compare the effects of market volatilities on Oxford Lane and TRINL 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 TRINL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and TRINL.
Diversification Opportunities for Oxford Lane and TRINL
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and TRINL is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and TRINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRINL 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 TRINL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRINL has no effect on the direction of Oxford Lane i.e., Oxford Lane and TRINL go up and down completely randomly.
Pair Corralation between Oxford Lane and TRINL
Assuming the 90 days horizon Oxford Lane Capital is expected to under-perform the TRINL. In addition to that, Oxford Lane is 3.53 times more volatile than TRINL. It trades about -0.09 of its total potential returns per unit of risk. TRINL is currently generating about 0.27 per unit of volatility. If you would invest 2,523 in TRINL on August 29, 2024 and sell it today you would earn a total of 14.00 from holding TRINL or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oxford Lane Capital vs. TRINL
Performance |
| Timeline |
| Oxford Lane Capital |
| TRINL |
Oxford Lane and TRINL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and TRINL
The main advantage of trading using opposite Oxford Lane and TRINL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, TRINL 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 TRINL will offset losses from the drop in TRINL'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 |
| TRINL vs. MSCI ACWI exAUCONSUMER | TRINL vs. Eagle Point Credit | TRINL vs. B Riley Financial | TRINL vs. Harrow Health 8625 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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