Correlation Between Oxford Square and Horizon Technology
Can any of the company-specific risk be diversified away by investing in both Oxford Square and Horizon Technology 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 Horizon Technology 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 Horizon Technology Finance, you can compare the effects of market volatilities on Oxford Square and Horizon Technology 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 Horizon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Square and Horizon Technology.
Diversification Opportunities for Oxford Square and Horizon Technology
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oxford and Horizon is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Square Capital and Horizon Technology Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Technology 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 Horizon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Technology has no effect on the direction of Oxford Square i.e., Oxford Square and Horizon Technology go up and down completely randomly.
Pair Corralation between Oxford Square and Horizon Technology
Given the investment horizon of 90 days Oxford Square Capital is expected to generate 0.73 times more return on investment than Horizon Technology. However, Oxford Square Capital is 1.36 times less risky than Horizon Technology. It trades about 0.03 of its potential returns per unit of risk. Horizon Technology Finance is currently generating about -0.01 per unit of risk. If you would invest 249.00 in Oxford Square Capital on August 26, 2024 and sell it today you would earn a total of 13.00 from holding Oxford Square Capital or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Square Capital vs. Horizon Technology Finance
Performance |
| Timeline |
| Oxford Square Capital |
| Horizon Technology |
Oxford Square and Horizon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Square and Horizon Technology
The main advantage of trading using opposite Oxford Square and Horizon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Square position performs unexpectedly, Horizon Technology 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 Horizon Technology will offset losses from the drop in Horizon Technology'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 |
| Horizon Technology vs. PowerUp Acquisition Corp | Horizon Technology vs. Aurora Innovation | Horizon Technology vs. HUMANA INC | Horizon Technology vs. Aquagold International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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