Correlation Between Oxford Square and Stellus Capital
Can any of the company-specific risk be diversified away by investing in both Oxford Square and Stellus 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 Stellus 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 Stellus Capital Investment, you can compare the effects of market volatilities on Oxford Square and Stellus 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 Stellus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Square and Stellus Capital.
Diversification Opportunities for Oxford Square and Stellus Capital
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oxford and Stellus is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Square Capital and Stellus Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellus Capital Inve 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 Stellus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellus Capital Inve has no effect on the direction of Oxford Square i.e., Oxford Square and Stellus Capital go up and down completely randomly.
Pair Corralation between Oxford Square and Stellus Capital
Given the investment horizon of 90 days Oxford Square is expected to generate 1.44 times less return on investment than Stellus Capital. In addition to that, Oxford Square is 1.16 times more volatile than Stellus Capital Investment. It trades about 0.03 of its total potential returns per unit of risk. Stellus Capital Investment is currently generating about 0.05 per unit of volatility. If you would invest 1,074 in Stellus Capital Investment on August 29, 2024 and sell it today you would earn a total of 312.00 from holding Stellus Capital Investment or generate 29.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Square Capital vs. Stellus Capital Investment
Performance |
| Timeline |
| Oxford Square Capital |
| Stellus Capital Inve |
Oxford Square and Stellus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Square and Stellus Capital
The main advantage of trading using opposite Oxford Square and Stellus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Square position performs unexpectedly, Stellus 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 Stellus Capital will offset losses from the drop in Stellus 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 |
| Stellus Capital vs. PennantPark Floating Rate | Stellus Capital vs. Gladstone Capital | Stellus Capital vs. Gladstone Investment | Stellus 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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