Correlation Between Oxford Square and RiverNorthDoubleLine
Can any of the company-specific risk be diversified away by investing in both Oxford Square and RiverNorthDoubleLine 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 RiverNorthDoubleLine 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 RiverNorthDoubleLine Strategic Opportunity, you can compare the effects of market volatilities on Oxford Square and RiverNorthDoubleLine 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 RiverNorthDoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Square and RiverNorthDoubleLine.
Diversification Opportunities for Oxford Square and RiverNorthDoubleLine
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oxford and RiverNorthDoubleLine is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Square Capital and RiverNorthDoubleLine Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RiverNorthDoubleLine 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 RiverNorthDoubleLine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RiverNorthDoubleLine has no effect on the direction of Oxford Square i.e., Oxford Square and RiverNorthDoubleLine go up and down completely randomly.
Pair Corralation between Oxford Square and RiverNorthDoubleLine
Given the investment horizon of 90 days Oxford Square Capital is expected to generate 1.9 times more return on investment than RiverNorthDoubleLine. However, Oxford Square is 1.9 times more volatile than RiverNorthDoubleLine Strategic Opportunity. It trades about 0.36 of its potential returns per unit of risk. RiverNorthDoubleLine Strategic Opportunity is currently generating about 0.12 per unit of risk. If you would invest 248.00 in Oxford Square Capital on November 2, 2024 and sell it today you would earn a total of 19.00 from holding Oxford Square Capital or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Square Capital vs. RiverNorthDoubleLine Strategic
Performance |
| Timeline |
| Oxford Square Capital |
| RiverNorthDoubleLine |
Oxford Square and RiverNorthDoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Square and RiverNorthDoubleLine
The main advantage of trading using opposite Oxford Square and RiverNorthDoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Square position performs unexpectedly, RiverNorthDoubleLine 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 RiverNorthDoubleLine will offset losses from the drop in RiverNorthDoubleLine'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 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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