Correlation Between Atlanticus Holdings and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings 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 Atlanticus Holdings and Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings and Oxford Square Capital, you can compare the effects of market volatilities on Atlanticus Holdings 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 Atlanticus Holdings with a short position of Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and Oxford Square.
Diversification Opportunities for Atlanticus Holdings and Oxford Square
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlanticus and Oxford is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings 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 Atlanticus Holdings 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 Atlanticus Holdings 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 Atlanticus Holdings i.e., Atlanticus Holdings and Oxford Square go up and down completely randomly.
Pair Corralation between Atlanticus Holdings and Oxford Square
Assuming the 90 days horizon Atlanticus Holdings is expected to generate 1.77 times more return on investment than Oxford Square. However, Atlanticus Holdings is 1.77 times more volatile than Oxford Square Capital. It trades about 0.04 of its potential returns per unit of risk. Oxford Square Capital is currently generating about 0.04 per unit of risk. If you would invest 2,347 in Atlanticus Holdings on September 26, 2024 and sell it today you would earn a total of 33.00 from holding Atlanticus Holdings or generate 1.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Atlanticus Holdings vs. Oxford Square Capital
Performance |
Timeline |
Atlanticus Holdings |
Oxford Square Capital |
Atlanticus Holdings and Oxford Square Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atlanticus Holdings and Oxford Square
The main advantage of trading using opposite Atlanticus Holdings and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings 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.Atlanticus Holdings vs. B Riley Financial | Atlanticus Holdings vs. Atlanticus Holdings Corp | Atlanticus Holdings vs. Atlas Corp | Atlanticus Holdings vs. Harrow Health 8625 |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |