Correlation Between Oxford Lane and Chicken Soup
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Chicken Soup 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 Chicken Soup 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 Chicken Soup For, you can compare the effects of market volatilities on Oxford Lane and Chicken Soup 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 Chicken Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Chicken Soup.
Diversification Opportunities for Oxford Lane and Chicken Soup
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oxford and Chicken is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Chicken Soup For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicken Soup For 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 Chicken Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicken Soup For has no effect on the direction of Oxford Lane i.e., Oxford Lane and Chicken Soup go up and down completely randomly.
Pair Corralation between Oxford Lane and Chicken Soup
Assuming the 90 days horizon Oxford Lane is expected to generate 2.35 times less return on investment than Chicken Soup. But when comparing it to its historical volatility, Oxford Lane Capital is 76.7 times less risky than Chicken Soup. It trades about 0.13 of its potential returns per unit of risk. Chicken Soup For is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 650.00 in Chicken Soup For on August 24, 2024 and sell it today you would lose (610.00) from holding Chicken Soup For or give up 93.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 60.0% |
| Values | Daily Returns |
Oxford Lane Capital vs. Chicken Soup For
Performance |
| Timeline |
| Oxford Lane Capital |
| Chicken Soup For |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oxford Lane and Chicken Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Chicken Soup
The main advantage of trading using opposite Oxford Lane and Chicken Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Chicken Soup 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 Chicken Soup will offset losses from the drop in Chicken Soup's long position.| Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Gladstone Commercial Corp | Oxford Lane vs. New York Mortgage | Oxford Lane vs. New York Mortgage |
| Chicken Soup vs. AMC Networks | Chicken Soup vs. Lions Gate Entertainment | Chicken Soup vs. Reservoir Media | Chicken Soup vs. Marcus |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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