Correlation Between Virtu Financial and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Virtu Financial 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 Virtu Financial and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and Oxford Square Capital, you can compare the effects of market volatilities on Virtu Financial 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 Virtu Financial with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and Oxford Square.
Diversification Opportunities for Virtu Financial and Oxford Square
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virtu and Oxford is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Virtu 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 Virtu Financial 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 Virtu 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 Virtu Financial i.e., Virtu Financial and Oxford Square go up and down completely randomly.
Pair Corralation between Virtu Financial and Oxford Square
Given the investment horizon of 90 days Virtu Financial is expected to generate 2.08 times more return on investment than Oxford Square. However, Virtu Financial is 2.08 times more volatile than Oxford Square Capital. It trades about 0.4 of its potential returns per unit of risk. Oxford Square Capital is currently generating about -0.41 per unit of risk. If you would invest 3,097 in Virtu Financial on August 26, 2024 and sell it today you would earn a total of 572.00 from holding Virtu Financial or generate 18.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtu Financial vs. Oxford Square Capital
Performance |
| Timeline |
| Virtu Financial |
| Oxford Square Capital |
Virtu Financial and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and Oxford Square
The main advantage of trading using opposite Virtu Financial and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial 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.| Virtu Financial vs. Perella Weinberg Partners | Virtu Financial vs. Evercore Partners | Virtu Financial vs. Lazard | Virtu Financial vs. Piper Sandler Companies |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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