Correlation Between Xp and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Xp and Oxford Lane 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 Xp and Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and Oxford Lane Capital, you can compare the effects of market volatilities on Xp and Oxford Lane 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 Xp with a short position of Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and Oxford Lane.
Diversification Opportunities for Xp and Oxford Lane
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xp and Oxford is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Xp Inc and Oxford Lane Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Lane Capital and Xp 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 Xp Inc are associated (or correlated) with Oxford Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Lane Capital has no effect on the direction of Xp i.e., Xp and Oxford Lane go up and down completely randomly.
Pair Corralation between Xp and Oxford Lane
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the Oxford Lane. In addition to that, Xp is 14.54 times more volatile than Oxford Lane Capital. It trades about -0.24 of its total potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.17 per unit of volatility. If you would invest 2,326 in Oxford Lane Capital on September 19, 2024 and sell it today you would earn a total of 46.00 from holding Oxford Lane Capital or generate 1.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xp Inc vs. Oxford Lane Capital
Performance |
Timeline |
Xp Inc |
Oxford Lane Capital |
Xp and Oxford Lane Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xp and Oxford Lane
The main advantage of trading using opposite Xp and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp position performs unexpectedly, Oxford Lane 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 Lane will offset losses from the drop in Oxford Lane's long position.Xp vs. Scully Royalty | Xp vs. Mercurity Fintech Holding | Xp vs. Donnelley Financial Solutions | Xp vs. CreditRiskMonitorCom |
Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Eagle Point Credit | Oxford Lane vs. Eagle Point Credit |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |