Correlation Between Oxford Square and PIMCO Access
Can any of the company-specific risk be diversified away by investing in both Oxford Square and PIMCO Access 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 PIMCO Access 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 PIMCO Access Income, you can compare the effects of market volatilities on Oxford Square and PIMCO Access 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 PIMCO Access. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Square and PIMCO Access.
Diversification Opportunities for Oxford Square and PIMCO Access
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and PIMCO is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Square Capital and PIMCO Access Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Access Income 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 PIMCO Access. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Access Income has no effect on the direction of Oxford Square i.e., Oxford Square and PIMCO Access go up and down completely randomly.
Pair Corralation between Oxford Square and PIMCO Access
Given the investment horizon of 90 days Oxford Square is expected to generate 1.44 times less return on investment than PIMCO Access. In addition to that, Oxford Square is 1.32 times more volatile than PIMCO Access Income. It trades about 0.03 of its total potential returns per unit of risk. PIMCO Access Income is currently generating about 0.06 per unit of volatility. If you would invest 1,278 in PIMCO Access Income on August 28, 2024 and sell it today you would earn a total of 395.00 from holding PIMCO Access Income or generate 30.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Square Capital vs. PIMCO Access Income
Performance |
| Timeline |
| Oxford Square Capital |
| PIMCO Access Income |
Oxford Square and PIMCO Access Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Square and PIMCO Access
The main advantage of trading using opposite Oxford Square and PIMCO Access positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Square position performs unexpectedly, PIMCO Access 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 PIMCO Access will offset losses from the drop in PIMCO Access' 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 |
| PIMCO Access vs. Pimco Dynamic Income | PIMCO Access vs. Pimco Corporate Income | PIMCO Access vs. Doubleline Yield Opportunities | PIMCO Access vs. Cohen Steers Reit |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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