Correlation Between Oxford Lane and Innventure,

Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Innventure, 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 Innventure, 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 Innventure,, you can compare the effects of market volatilities on Oxford Lane and Innventure, 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 Innventure,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Innventure,.

Diversification Opportunities for Oxford Lane and Innventure,

-0.13

Correlation Coefficient

Oxford Lane  Innventure,

Good diversification

The 3 months correlation between Oxford and Innventure, is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Innventure, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innventure, 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 Innventure,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innventure, has no effect on the direction of Oxford Lane i.e., Oxford Lane and Innventure, go up and down completely randomly.

Pair Corralation between Oxford Lane and Innventure,

Assuming the 90 days horizon Oxford Lane is expected to generate 14.9 times less return on investment than Innventure,. But when comparing it to its historical volatility, Oxford Lane Capital is 11.21 times less risky than Innventure,. It trades about 0.06 of its potential returns per unit of risk. Innventure, is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,136  in Innventure, on October 7, 2024 and sell it today you would earn a total of  218.00  from holding Innventure, or generate 19.19% return on investment over 90 days.

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

Oxford Lane Capital  vs.  Innventure,

Oxford Lane Capital

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Oxford Lane Capital are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Oxford Lane is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Innventure,

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Innventure, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Innventure, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oxford Lane and Innventure,

The main advantage of trading using opposite Oxford Lane and Innventure, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Innventure, 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 Innventure, will offset losses from the drop in Innventure,'s long position.

The idea behind Oxford Lane Capital and Innventure, 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.