Correlation Between Brookfield Real and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Brookfield Real 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 Brookfield Real and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Real Assets and Oxford Square Capital, you can compare the effects of market volatilities on Brookfield Real 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 Brookfield Real with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Real and Oxford Square.
Diversification Opportunities for Brookfield Real and Oxford Square
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brookfield and Oxford is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Real Assets 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 Brookfield Real 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 Brookfield Real Assets 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 Brookfield Real i.e., Brookfield Real and Oxford Square go up and down completely randomly.
Pair Corralation between Brookfield Real and Oxford Square
Allowing for the 90-day total investment horizon Brookfield Real is expected to generate 5.83 times less return on investment than Oxford Square. But when comparing it to its historical volatility, Brookfield Real Assets is 2.6 times less risky than Oxford Square. It trades about 0.16 of its potential returns per unit of risk. Oxford Square Capital is currently generating about 0.36 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Real Assets vs. Oxford Square Capital
Performance |
| Timeline |
| Brookfield Real Assets |
| Oxford Square Capital |
Brookfield Real and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Real and Oxford Square
The main advantage of trading using opposite Brookfield Real and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Real 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.| Brookfield Real vs. Pimco Dynamic Income | Brookfield Real vs. Pimco Corporate Income | Brookfield Real vs. Cornerstone Strategic Value | Brookfield Real vs. Cornerstone Strategic Return |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |