Correlation Between Oxford Lane and RiverNorth Specialty
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and RiverNorth Specialty 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 RiverNorth Specialty 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 RiverNorth Specialty Finance, you can compare the effects of market volatilities on Oxford Lane and RiverNorth Specialty 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 RiverNorth Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and RiverNorth Specialty.
Diversification Opportunities for Oxford Lane and RiverNorth Specialty
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oxford and RiverNorth is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and RiverNorth Specialty Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RiverNorth Specialty 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 RiverNorth Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RiverNorth Specialty has no effect on the direction of Oxford Lane i.e., Oxford Lane and RiverNorth Specialty go up and down completely randomly.
Pair Corralation between Oxford Lane and RiverNorth Specialty
Assuming the 90 days horizon Oxford Lane Capital is expected to generate 14.82 times more return on investment than RiverNorth Specialty. However, Oxford Lane is 14.82 times more volatile than RiverNorth Specialty Finance. It trades about 0.18 of its potential returns per unit of risk. RiverNorth Specialty Finance is currently generating about 0.5 per unit of risk. If you would invest 2,381 in Oxford Lane Capital on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Oxford Lane Capital or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 19.05% |
| Values | Daily Returns |
Oxford Lane Capital vs. RiverNorth Specialty Finance
Performance |
| Timeline |
| Oxford Lane Capital |
| RiverNorth Specialty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Excellent
Oxford Lane and RiverNorth Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and RiverNorth Specialty
The main advantage of trading using opposite Oxford Lane and RiverNorth Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, RiverNorth Specialty 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 RiverNorth Specialty will offset losses from the drop in RiverNorth Specialty's long position.| Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Dividend | Oxford Lane vs. The Gabelli Equity |
| RiverNorth Specialty vs. GAMCO Natural Resources | RiverNorth Specialty vs. The Gabelli Multimedia | RiverNorth Specialty vs. Customers Bancorp | RiverNorth Specialty vs. SCE Trust II |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |