Correlation Between Blackstone and Oxford Square

Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackstone Group and Oxford Square Capital, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Oxford Square.

Diversification Opportunities for Blackstone and Oxford Square

-0.47

Correlation Coefficient

Blackstone  Oxford Square

Very good diversification

The 3 months correlation between Blackstone and Oxford is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group 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 Blackstone 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 Blackstone Group 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 Blackstone i.e., Blackstone and Oxford Square go up and down completely randomly.

Pair Corralation between Blackstone and Oxford Square

Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.8 times more return on investment than Oxford Square. However, Blackstone is 1.8 times more volatile than Oxford Square Capital. It trades about 0.25 of its potential returns per unit of risk. Oxford Square Capital is currently generating about -0.09 per unit of risk. If you would invest  14,575  in Blackstone Group on September 12, 2024 and sell it today you would earn a total of  4,382  from holding Blackstone Group or generate 30.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Blackstone Group  vs.  Oxford Square Capital

Blackstone Group

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Blackstone showed solid returns over the last few months and may actually be approaching a breakup point.

Oxford Square Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oxford Square Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Oxford Square is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Blackstone and Oxford Square

The main advantage of trading using opposite Blackstone and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.

The idea behind Blackstone Group and Oxford Square Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.