Correlation Between Oxford Lane and Virtus AllianzGI
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Virtus AllianzGI 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 Oxford Lane and Virtus AllianzGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Lane Capital and Virtus AllianzGI Convertible, you can compare the effects of market volatilities on Oxford Lane and Virtus AllianzGI 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 Oxford Lane with a short position of Virtus AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Virtus AllianzGI.
Diversification Opportunities for Oxford Lane and Virtus AllianzGI
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxford and Virtus is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con and Oxford Lane 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 Oxford Lane Capital are associated (or correlated) with Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of Oxford Lane i.e., Oxford Lane and Virtus AllianzGI go up and down completely randomly.
Pair Corralation between Oxford Lane and Virtus AllianzGI
If you would invest 2,498 in Oxford Lane Capital on September 26, 2024 and sell it today you would earn a total of 0.00 from holding Oxford Lane Capital or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 1.59% |
Values | Daily Returns |
Oxford Lane Capital vs. Virtus AllianzGI Convertible
Performance |
Timeline |
Oxford Lane Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Virtus AllianzGI Con |
Oxford Lane and Virtus AllianzGI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oxford Lane and Virtus AllianzGI
The main advantage of trading using opposite Oxford Lane and Virtus AllianzGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Virtus AllianzGI 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 Virtus AllianzGI will offset losses from the drop in Virtus AllianzGI's long position.Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Equity | Oxford Lane vs. Virtus AllianzGI Convertible | Oxford Lane vs. The Gabelli Equity |
Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. The Gabelli Utility | Virtus AllianzGI vs. The Gabelli Multimedia | Virtus AllianzGI vs. Tri Continental PFD |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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