Correlation Between Oxford Square and Affiliated Managers
Can any of the company-specific risk be diversified away by investing in both Oxford Square and Affiliated Managers 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 Square and Affiliated Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Square Capital and Affiliated Managers Group,, you can compare the effects of market volatilities on Oxford Square and Affiliated Managers 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 Square with a short position of Affiliated Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Square and Affiliated Managers.
Diversification Opportunities for Oxford Square and Affiliated Managers
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and Affiliated is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Square Capital and Affiliated Managers Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Managers and Oxford Square 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 Square Capital are associated (or correlated) with Affiliated Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Managers has no effect on the direction of Oxford Square i.e., Oxford Square and Affiliated Managers go up and down completely randomly.
Pair Corralation between Oxford Square and Affiliated Managers
Assuming the 90 days horizon Oxford Square Capital is expected to generate 0.57 times more return on investment than Affiliated Managers. However, Oxford Square Capital is 1.76 times less risky than Affiliated Managers. It trades about 0.04 of its potential returns per unit of risk. Affiliated Managers Group, is currently generating about -0.19 per unit of risk. If you would invest 2,295 in Oxford Square Capital on September 26, 2024 and sell it today you would earn a total of 25.00 from holding Oxford Square Capital or generate 1.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Oxford Square Capital vs. Affiliated Managers Group,
Performance |
Timeline |
Oxford Square Capital |
Affiliated Managers |
Oxford Square and Affiliated Managers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oxford Square and Affiliated Managers
The main advantage of trading using opposite Oxford Square and Affiliated Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Square position performs unexpectedly, Affiliated Managers 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 Affiliated Managers will offset losses from the drop in Affiliated Managers' long position.Oxford Square vs. Oxford Square Capital | Oxford Square vs. Oxford Lane Capital | Oxford Square vs. B Riley Financial | Oxford Square vs. Gladstone Investment |
Affiliated Managers vs. Affiliated Managers Group, | Affiliated Managers vs. Southern Company Series | Affiliated Managers vs. Affiliated Managers Group | Affiliated Managers vs. Southern Co |
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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