Correlation Between Gabelli Dividend and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Gabelli Dividend 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 Gabelli Dividend and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Dividend and Oxford Lane Capital, you can compare the effects of market volatilities on Gabelli Dividend 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 Gabelli Dividend with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Dividend and Oxford Lane.
Diversification Opportunities for Gabelli Dividend and Oxford Lane
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Oxford is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Dividend 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 Gabelli Dividend 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 The Gabelli Dividend 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 Gabelli Dividend i.e., Gabelli Dividend and Oxford Lane go up and down completely randomly.
Pair Corralation between Gabelli Dividend and Oxford Lane
Assuming the 90 days trading horizon The Gabelli Dividend is expected to generate 2.39 times more return on investment than Oxford Lane. However, Gabelli Dividend is 2.39 times more volatile than Oxford Lane Capital. It trades about 0.09 of its potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.15 per unit of risk. If you would invest 1,885 in The Gabelli Dividend on December 2, 2024 and sell it today you would earn a total of 19.00 from holding The Gabelli Dividend or generate 1.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
The Gabelli Dividend vs. Oxford Lane Capital
Performance |
Timeline |
Gabelli Dividend |
Oxford Lane Capital |
Gabelli Dividend and Oxford Lane Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gabelli Dividend and Oxford Lane
The main advantage of trading using opposite Gabelli Dividend and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Dividend 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.Gabelli Dividend vs. SiriusPoint | Gabelli Dividend vs. Athene Holding | Gabelli Dividend vs. The Gabelli Multimedia | Gabelli Dividend vs. The Gabelli Dividend |
Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Equity |
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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