Correlation Between Eagle Point and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Eagle Point 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 Eagle Point and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Credit and Oxford Square Capital, you can compare the effects of market volatilities on Eagle Point 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 Eagle Point with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Oxford Square.
Diversification Opportunities for Eagle Point and Oxford Square
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eagle and Oxford is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit 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 Eagle Point 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 Eagle Point Credit 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 Eagle Point i.e., Eagle Point and Oxford Square go up and down completely randomly.
Pair Corralation between Eagle Point and Oxford Square
Considering the 90-day investment horizon Eagle Point Credit is expected to under-perform the Oxford Square. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Point Credit is 1.05 times less risky than Oxford Square. The stock trades about -0.06 of its potential returns per unit of risk. The Oxford Square Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 237.00 in Oxford Square Capital on December 27, 2024 and sell it today you would earn a total of 20.00 from holding Oxford Square Capital or generate 8.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Eagle Point Credit vs. Oxford Square Capital
Performance |
Timeline |
Eagle Point Credit |
Oxford Square Capital |
Eagle Point and Oxford Square Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Point and Oxford Square
The main advantage of trading using opposite Eagle Point and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point 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.Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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