Correlation Between PhenixFIN 525 and Oxford Square
Can any of the company-specific risk be diversified away by investing in both PhenixFIN 525 and Oxford Square 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 PhenixFIN 525 and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PhenixFIN 525 and Oxford Square Capital, you can compare the effects of market volatilities on PhenixFIN 525 and Oxford Square 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 PhenixFIN 525 with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of PhenixFIN 525 and Oxford Square.
Diversification Opportunities for PhenixFIN 525 and Oxford Square
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PhenixFIN and Oxford is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding PhenixFIN 525 and Oxford Square Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Square Capital and PhenixFIN 525 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 PhenixFIN 525 are associated (or correlated) with Oxford Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Square Capital has no effect on the direction of PhenixFIN 525 i.e., PhenixFIN 525 and Oxford Square go up and down completely randomly.
Pair Corralation between PhenixFIN 525 and Oxford Square
Assuming the 90 days horizon PhenixFIN 525 is expected to under-perform the Oxford Square. In addition to that, PhenixFIN 525 is 2.14 times more volatile than Oxford Square Capital. It trades about -0.03 of its total potential returns per unit of risk. Oxford Square Capital is currently generating about 0.25 per unit of volatility. If you would invest 2,446 in Oxford Square Capital on September 4, 2024 and sell it today you would earn a total of 30.00 from holding Oxford Square Capital or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PhenixFIN 525 vs. Oxford Square Capital
Performance |
| Timeline |
| PhenixFIN 525 |
| Oxford Square Capital |
PhenixFIN 525 and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PhenixFIN 525 and Oxford Square
The main advantage of trading using opposite PhenixFIN 525 and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PhenixFIN 525 position performs unexpectedly, Oxford Square 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 Oxford Square will offset losses from the drop in Oxford Square's long position.| PhenixFIN 525 vs. Oxford Square Capital | PhenixFIN 525 vs. Atlanticus Holdings | PhenixFIN 525 vs. Oxford Square Capital | PhenixFIN 525 vs. Oxford Lane Capital |
| Oxford Square vs. Navient SR | Oxford Square vs. First Internet Bancorp | Oxford Square vs. Small Cap Premium | Oxford Square vs. Stifel Financial |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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