Correlation Between Gladstone Land and Oxford Lane

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

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

Diversification Opportunities for Gladstone Land and Oxford Lane

0.0

Correlation Coefficient

Gladstone Land  Oxford Lane

Pay attention - limited upside

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

Pair Corralation between Gladstone Land and Oxford Lane

If you would invest  2,433  in Gladstone Land Corp on December 30, 2024 and sell it today you would earn a total of  55.00  from holding Gladstone Land Corp or generate 2.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Gladstone Land Corp  vs.  Oxford Lane Capital

Gladstone Land Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gladstone Land Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Gladstone Land is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Oxford Lane Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oxford Lane Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Oxford Lane is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Gladstone Land and Oxford Lane

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

The idea behind Gladstone Land Corp and Oxford Lane 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.