Correlation Between Oxford Lane and Torrent Capital
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Torrent Capital 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 Torrent Capital 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 Torrent Capital, you can compare the effects of market volatilities on Oxford Lane and Torrent Capital 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 Torrent Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Torrent Capital.
Diversification Opportunities for Oxford Lane and Torrent Capital
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxford and Torrent is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Torrent Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Torrent Capital 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 Torrent Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Torrent Capital has no effect on the direction of Oxford Lane i.e., Oxford Lane and Torrent Capital go up and down completely randomly.
Pair Corralation between Oxford Lane and Torrent Capital
Assuming the 90 days horizon Oxford Lane Capital is expected to generate 0.5 times more return on investment than Torrent Capital. However, Oxford Lane Capital is 2.01 times less risky than Torrent Capital. It trades about 0.12 of its potential returns per unit of risk. Torrent Capital is currently generating about -0.06 per unit of risk. If you would invest 2,164 in Oxford Lane Capital on August 25, 2024 and sell it today you would earn a total of 140.00 from holding Oxford Lane Capital or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Oxford Lane Capital vs. Torrent Capital
Performance |
| Timeline |
| Oxford Lane Capital |
| Torrent Capital |
Oxford Lane and Torrent Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Torrent Capital
The main advantage of trading using opposite Oxford Lane and Torrent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Torrent Capital 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 Torrent Capital will offset losses from the drop in Torrent Capital's long position.| Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Equity |
| Torrent Capital vs. Blackstone Group | Torrent Capital vs. BlackRock | Torrent Capital vs. Apollo Global Management | Torrent Capital vs. Investor AB ser |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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