Correlation Between Oxford Lane and Gabelli Equity
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Gabelli Equity 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 Gabelli Equity 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 The Gabelli Equity, you can compare the effects of market volatilities on Oxford Lane and Gabelli Equity 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 Gabelli Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Gabelli Equity.
Diversification Opportunities for Oxford Lane and Gabelli Equity
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oxford and Gabelli is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and The Gabelli Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Equity 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 Gabelli Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Equity has no effect on the direction of Oxford Lane i.e., Oxford Lane and Gabelli Equity go up and down completely randomly.
Pair Corralation between Oxford Lane and Gabelli Equity
Assuming the 90 days horizon Oxford Lane is expected to generate 1.86 times less return on investment than Gabelli Equity. But when comparing it to its historical volatility, Oxford Lane Capital is 3.89 times less risky than Gabelli Equity. It trades about 0.22 of its potential returns per unit of risk. The Gabelli Equity is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,002 in The Gabelli Equity on August 24, 2024 and sell it today you would earn a total of 308.00 from holding The Gabelli Equity or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 60.4% |
| Values | Daily Returns |
Oxford Lane Capital vs. The Gabelli Equity
Performance |
| Timeline |
| Oxford Lane Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gabelli Equity |
Oxford Lane and Gabelli Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Gabelli Equity
The main advantage of trading using opposite Oxford Lane and Gabelli Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Gabelli Equity 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 Gabelli Equity will offset losses from the drop in Gabelli Equity'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 |
| Gabelli Equity vs. Virtus AllianzGI Convertible | Gabelli Equity vs. The Gabelli Equity | Gabelli Equity vs. Oxford Lane Capital | Gabelli Equity vs. The Gabelli Utility |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |