Correlation Between Oxford Square and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both Oxford Square and Gladstone Investment 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 Square and Gladstone Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Square Capital and Gladstone Investment, you can compare the effects of market volatilities on Oxford Square and Gladstone Investment 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 Square with a short position of Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Square and Gladstone Investment.
Diversification Opportunities for Oxford Square and Gladstone Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxford and Gladstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Square Capital and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment and Oxford Square 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 Square Capital are associated (or correlated) with Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of Oxford Square i.e., Oxford Square and Gladstone Investment go up and down completely randomly.
Pair Corralation between Oxford Square and Gladstone Investment
Given the investment horizon of 90 days Oxford Square is expected to generate 1.71 times less return on investment than Gladstone Investment. In addition to that, Oxford Square is 1.03 times more volatile than Gladstone Investment. It trades about 0.03 of its total potential returns per unit of risk. Gladstone Investment is currently generating about 0.05 per unit of volatility. If you would invest 1,000.00 in Gladstone Investment on August 29, 2024 and sell it today you would earn a total of 352.00 from holding Gladstone Investment or generate 35.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Square Capital vs. Gladstone Investment
Performance |
| Timeline |
| Oxford Square Capital |
| Gladstone Investment |
Oxford Square and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Square and Gladstone Investment
The main advantage of trading using opposite Oxford Square and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Square position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.| Oxford Square vs. Eagle Point Credit | Oxford Square vs. Cornerstone Strategic Return | Oxford Square vs. Cornerstone Strategic Value | Oxford Square vs. Guggenheim Strategic Opportunities |
| Gladstone Investment vs. TPG Inc | Gladstone Investment vs. Carlyle Secured Lending | Gladstone Investment vs. Brookfield Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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