Correlation Between Oxford Lane and Gabelli Utility
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Gabelli Utility 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 Utility 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 Utility, you can compare the effects of market volatilities on Oxford Lane and Gabelli Utility 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 Utility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Gabelli Utility.
Diversification Opportunities for Oxford Lane and Gabelli Utility
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oxford and Gabelli is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and The Gabelli Utility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Utility 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 Utility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Utility has no effect on the direction of Oxford Lane i.e., Oxford Lane and Gabelli Utility go up and down completely randomly.
Pair Corralation between Oxford Lane and Gabelli Utility
Assuming the 90 days horizon Oxford Lane is expected to generate 1.57 times less return on investment than Gabelli Utility. But when comparing it to its historical volatility, Oxford Lane Capital is 5.97 times less risky than Gabelli Utility. It trades about 0.22 of its potential returns per unit of risk. The Gabelli Utility is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,201 in The Gabelli Utility on August 24, 2024 and sell it today you would earn a total of 268.00 from holding The Gabelli Utility or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.4% |
| Values | Daily Returns |
Oxford Lane Capital vs. The Gabelli Utility
Performance |
| Timeline |
| Oxford Lane Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gabelli Utility |
Oxford Lane and Gabelli Utility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Gabelli Utility
The main advantage of trading using opposite Oxford Lane and Gabelli Utility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Gabelli Utility 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 Utility will offset losses from the drop in Gabelli Utility'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 Utility vs. The Gabelli Equity | Gabelli Utility vs. Virtus AllianzGI Convertible | Gabelli Utility vs. The Gabelli Equity | Gabelli Utility 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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