Correlation Between Oxford Lane and Boston Partners

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

Diversification Opportunities for Oxford Lane and Boston Partners

-0.3

Correlation Coefficient

Oxford Lane  Boston Partners

Very good diversification

The 3 months correlation between Oxford and Boston is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Boston Partners Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Small 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 Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Small has no effect on the direction of Oxford Lane i.e., Oxford Lane and Boston Partners go up and down completely randomly.

Pair Corralation between Oxford Lane and Boston Partners

Given the investment horizon of 90 days Oxford Lane Capital is expected to under-perform the Boston Partners. In addition to that, Oxford Lane is 1.83 times more volatile than Boston Partners Small. It trades about -0.2 of its total potential returns per unit of risk. Boston Partners Small is currently generating about 0.1 per unit of volatility. If you would invest  2,441  in Boston Partners Small on May 6, 2025 and sell it today you would earn a total of  149.00  from holding Boston Partners Small or generate 6.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Oxford Lane Capital  vs.  Boston Partners Small

Oxford Lane Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oxford Lane Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Boston Partners Small

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Boston Partners Small are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Boston Partners may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Oxford Lane and Boston Partners

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

The idea behind Oxford Lane Capital and Boston Partners Small 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.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.