Correlation Between KKR Co and Oxford Square

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

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

Diversification Opportunities for KKR Co and Oxford Square

-0.39

Correlation Coefficient

KKR Co  Oxford Square

Very good diversification

The 3 months correlation between KKR and Oxford is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP 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 KKR Co 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 KKR Co LP 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 KKR Co i.e., KKR Co and Oxford Square go up and down completely randomly.

Pair Corralation between KKR Co and Oxford Square

Considering the 90-day investment horizon KKR Co LP is expected to under-perform the Oxford Square. In addition to that, KKR Co is 2.45 times more volatile than Oxford Square Capital. It trades about -0.14 of its total potential returns per unit of risk. Oxford Square Capital is currently generating about 0.12 per unit of volatility. If you would invest  240.00  in Oxford Square Capital on December 24, 2024 and sell it today you would earn a total of  19.00  from holding Oxford Square Capital or generate 7.92% return on investment over 90 days.

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

KKR Co LP  vs.  Oxford Square Capital

KKR Co LP

Risk-Adjusted Performance

Very Weak

Over the last 90 days KKR Co LP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Oxford Square Capital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oxford Square Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Oxford Square may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with KKR Co and Oxford Square

The main advantage of trading using opposite KKR Co and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co 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 KKR Co LP 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.