Correlation Between Oxford Square and Gladstone Capital
Can any of the company-specific risk be diversified away by investing in both Oxford Square and Gladstone 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 Square and Gladstone Capital 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 Capital, you can compare the effects of market volatilities on Oxford Square and Gladstone 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 Square with a short position of Gladstone Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Square and Gladstone Capital.
Diversification Opportunities for Oxford Square and Gladstone Capital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and Gladstone is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Square Capital and Gladstone Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Capital 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 Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Capital has no effect on the direction of Oxford Square i.e., Oxford Square and Gladstone Capital go up and down completely randomly.
Pair Corralation between Oxford Square and Gladstone Capital
Given the investment horizon of 90 days Oxford Square is expected to generate 2.8 times less return on investment than Gladstone Capital. In addition to that, Oxford Square is 1.13 times more volatile than Gladstone Capital. It trades about 0.03 of its total potential returns per unit of risk. Gladstone Capital is currently generating about 0.1 per unit of volatility. If you would invest 1,639 in Gladstone Capital on August 29, 2024 and sell it today you would earn a total of 1,128 from holding Gladstone Capital or generate 68.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Square Capital vs. Gladstone Capital
Performance |
| Timeline |
| Oxford Square Capital |
| Gladstone Capital |
Oxford Square and Gladstone Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Square and Gladstone Capital
The main advantage of trading using opposite Oxford Square and Gladstone Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Square position performs unexpectedly, Gladstone 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 Gladstone Capital will offset losses from the drop in Gladstone Capital'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 Capital vs. Main Street Capital | Gladstone Capital vs. PennantPark Floating Rate | Gladstone Capital vs. Horizon Technology Finance | Gladstone Capital vs. Prospect Capital |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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