Correlation Between Rand Capital and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Rand Capital and Oxford Lane 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 Rand Capital and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rand Capital Corp and Oxford Lane Capital, you can compare the effects of market volatilities on Rand Capital and Oxford Lane 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 Rand Capital with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rand Capital and Oxford Lane.
Diversification Opportunities for Rand Capital and Oxford Lane
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rand and Oxford is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Rand Capital Corp and Oxford Lane Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Lane Capital and Rand Capital 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 Rand Capital Corp are associated (or correlated) with Oxford Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Lane Capital has no effect on the direction of Rand Capital i.e., Rand Capital and Oxford Lane go up and down completely randomly.
Pair Corralation between Rand Capital and Oxford Lane
Given the investment horizon of 90 days Rand Capital Corp is expected to generate 1.25 times more return on investment than Oxford Lane. However, Rand Capital is 1.25 times more volatile than Oxford Lane Capital. It trades about 0.13 of its potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.1 per unit of risk. If you would invest 1,613 in Rand Capital Corp on August 28, 2024 and sell it today you would earn a total of 36.00 from holding Rand Capital Corp or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Rand Capital Corp vs. Oxford Lane Capital
Performance |
| Timeline |
| Rand Capital Corp |
| Oxford Lane Capital |
Rand Capital and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rand Capital and Oxford Lane
The main advantage of trading using opposite Rand Capital and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rand Capital position performs unexpectedly, Oxford Lane 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 Lane will offset losses from the drop in Oxford Lane's long position.| Rand Capital vs. PowerUp Acquisition Corp | Rand Capital vs. Aurora Innovation | Rand Capital vs. HUMANA INC | Rand Capital vs. Aquagold International |
| Oxford Lane vs. Capital Southwest | Oxford Lane vs. XAI Octagon Floating | Oxford Lane vs. Cornerstone Strategic Return | Oxford Lane vs. Cornerstone Strategic Value |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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