Correlation Between Armada Hflr and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Oxford Lane Capital, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Oxford Lane.
Diversification Opportunities for Armada Hflr and Oxford Lane
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and Oxford is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr 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 Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Oxford Lane go up and down completely randomly.
Pair Corralation between Armada Hflr and Oxford Lane
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Oxford Lane. In addition to that, Armada Hflr is 1.56 times more volatile than Oxford Lane Capital. It trades about -0.27 of its total potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.08 per unit of volatility. If you would invest 2,371 in Oxford Lane Capital on September 24, 2024 and sell it today you would earn a total of 31.00 from holding Oxford Lane Capital or generate 1.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Armada Hflr Pr vs. Oxford Lane Capital
Performance |
Timeline |
Armada Hflr Pr |
Oxford Lane Capital |
Armada Hflr and Oxford Lane Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Oxford Lane
The main advantage of trading using opposite Armada Hflr and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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