Correlation Between B Riley and Oxford Square
Can any of the company-specific risk be diversified away by investing in both B Riley 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 B Riley and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B Riley Financial and Oxford Square Capital, you can compare the effects of market volatilities on B Riley 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 B Riley with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Riley and Oxford Square.
Diversification Opportunities for B Riley and Oxford Square
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between RILYZ and Oxford is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding B Riley Financial 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 B Riley 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 B Riley Financial 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 B Riley i.e., B Riley and Oxford Square go up and down completely randomly.
Pair Corralation between B Riley and Oxford Square
Assuming the 90 days horizon B Riley Financial is expected to under-perform the Oxford Square. In addition to that, B Riley is 6.76 times more volatile than Oxford Square Capital. It trades about 0.0 of its total potential returns per unit of risk. Oxford Square Capital is currently generating about 0.07 per unit of volatility. If you would invest 2,032 in Oxford Square Capital on August 30, 2024 and sell it today you would earn a total of 443.00 from holding Oxford Square Capital or generate 21.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
B Riley Financial vs. Oxford Square Capital
Performance |
| Timeline |
| B Riley Financial |
| Oxford Square Capital |
B Riley and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B Riley and Oxford Square
The main advantage of trading using opposite B Riley and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Riley 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.| B Riley vs. B Riley Financial | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial, | B Riley vs. B Riley 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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