Correlation Between Oxford Lane and B Riley
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and B Riley 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 B Riley 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 B Riley Financial, you can compare the effects of market volatilities on Oxford Lane and B Riley 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 B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and B Riley.
Diversification Opportunities for Oxford Lane and B Riley
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oxford and RILYT is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of Oxford Lane i.e., Oxford Lane and B Riley go up and down completely randomly.
Pair Corralation between Oxford Lane and B Riley
Assuming the 90 days horizon Oxford Lane Capital is expected to generate 0.04 times more return on investment than B Riley. However, Oxford Lane Capital is 25.46 times less risky than B Riley. It trades about 0.16 of its potential returns per unit of risk. B Riley Financial is currently generating about -0.01 per unit of risk. If you would invest 2,279 in Oxford Lane Capital on August 31, 2024 and sell it today you would earn a total of 130.00 from holding Oxford Lane Capital or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Lane Capital vs. B Riley Financial
Performance |
| Timeline |
| Oxford Lane Capital |
| B Riley Financial |
Oxford Lane and B Riley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and B Riley
The main advantage of trading using opposite Oxford Lane and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley'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 |
| B Riley vs. B Riley Financial | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial, | B Riley vs. B Riley Financial |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |