Correlation Between Dupont De and Oxford Square

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

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

Diversification Opportunities for Dupont De and Oxford Square

0.0

Correlation Coefficient

Dupont De  Oxford Square

Pay attention - limited upside

The 3 months correlation between Dupont and Oxford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours 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 Dupont De 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 Dupont De Nemours 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 Dupont De i.e., Dupont De and Oxford Square go up and down completely randomly.

Pair Corralation between Dupont De and Oxford Square

Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.67 times less return on investment than Oxford Square. In addition to that, Dupont De is 2.95 times more volatile than Oxford Square Capital. It trades about 0.01 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  2,390  in Oxford Square Capital on October 7, 2024 and sell it today you would earn a total of  110.00  from holding Oxford Square Capital or generate 4.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	26.41%
Values	Daily Returns

Dupont De Nemours  vs.  Oxford Square Capital

Dupont De Nemours

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Dupont De Nemours has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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. Despite quite persistent basic indicators, Oxford Square is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Dupont De and Oxford Square

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

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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 CEOs Directory module to screen CEOs from public companies around the world.