Correlation Between Oxford Lane and Customers Bancorp
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Customers Bancorp 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 Customers Bancorp 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 Customers Bancorp, you can compare the effects of market volatilities on Oxford Lane and Customers Bancorp 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 Customers Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Customers Bancorp.
Diversification Opportunities for Oxford Lane and Customers Bancorp
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oxford and Customers is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Customers Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Customers Bancorp 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 Customers Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Customers Bancorp has no effect on the direction of Oxford Lane i.e., Oxford Lane and Customers Bancorp go up and down completely randomly.
Pair Corralation between Oxford Lane and Customers Bancorp
If you would invest 2,567 in Customers Bancorp on August 28, 2024 and sell it today you would earn a total of 51.00 from holding Customers Bancorp or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Oxford Lane Capital vs. Customers Bancorp
Performance |
| Timeline |
| Oxford Lane Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Customers Bancorp |
Oxford Lane and Customers Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Customers Bancorp
The main advantage of trading using opposite Oxford Lane and Customers Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Customers Bancorp 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 Customers Bancorp will offset losses from the drop in Customers Bancorp's long position.| Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Equity | Oxford Lane vs. Virtus AllianzGI Convertible | Oxford Lane vs. The Gabelli Equity |
| Customers Bancorp vs. KeyCorp | Customers Bancorp vs. Associated Banc Corp | Customers Bancorp vs. New York Community | Customers Bancorp vs. Synovus Financial Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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