Correlation Between Affiliated Managers and Oxford Square

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

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

Diversification Opportunities for Affiliated Managers and Oxford Square

-0.68

Correlation Coefficient

Affiliated Managers  Oxford Square

Excellent diversification

The 3 months correlation between Affiliated and Oxford is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Managers Group, 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 Affiliated Managers 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 Affiliated Managers Group, 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 Affiliated Managers i.e., Affiliated Managers and Oxford Square go up and down completely randomly.

Pair Corralation between Affiliated Managers and Oxford Square

Given the investment horizon of 90 days Affiliated Managers is expected to generate 4.67 times less return on investment than Oxford Square. In addition to that, Affiliated Managers is 2.39 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 0.06 per unit of volatility. If you would invest  2,105  in Oxford Square Capital on October 13, 2024 and sell it today you would earn a total of  381.00  from holding Oxford Square Capital or generate 18.1% return on investment over 90 days.

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

Affiliated Managers Group,  vs.  Oxford Square Capital

Affiliated Managers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Affiliated Managers Group, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic 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

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oxford Square Capital are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Oxford Square is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Affiliated Managers and Oxford Square

The main advantage of trading using opposite Affiliated Managers and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Managers 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 Affiliated Managers Group, 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.