Correlation Between Victory Capital and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Victory Capital 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 Victory Capital and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Capital Holdings and Oxford Square Capital, you can compare the effects of market volatilities on Victory Capital 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 Victory Capital with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Capital and Oxford Square.
Diversification Opportunities for Victory Capital and Oxford Square
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Victory and Oxford is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Victory Capital Holdings 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 Victory 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 Victory Capital Holdings 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 Victory Capital i.e., Victory Capital and Oxford Square go up and down completely randomly.
Pair Corralation between Victory Capital and Oxford Square
Given the investment horizon of 90 days Victory Capital is expected to generate 1.07 times less return on investment than Oxford Square. In addition to that, Victory Capital is 1.67 times more volatile than Oxford Square Capital. It trades about 0.13 of its total potential returns per unit of risk. Oxford Square Capital is currently generating about 0.24 per unit of volatility. If you would invest 245.00 in Oxford Square Capital on October 20, 2024 and sell it today you would earn a total of 16.00 from holding Oxford Square Capital or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Capital Holdings vs. Oxford Square Capital
Performance |
| Timeline |
| Victory Capital Holdings |
| Oxford Square Capital |
Victory Capital and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Capital and Oxford Square
The main advantage of trading using opposite Victory Capital and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Capital 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.| Victory Capital vs. Federated Premier Municipal | Victory Capital vs. Blackrock Muniyield | Victory Capital vs. Diamond Hill Investment | Victory Capital vs. NXG NextGen Infrastructure |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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