Correlation Between Oxford Lane and Centerspace

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

Diversification Opportunities for Oxford Lane and Centerspace

0.61

Correlation Coefficient

Oxford Lane  Centerspace

Poor diversification

The 3 months correlation between Oxford and Centerspace is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Centerspace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centerspace 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 Centerspace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centerspace has no effect on the direction of Oxford Lane i.e., Oxford Lane and Centerspace go up and down completely randomly.

Pair Corralation between Oxford Lane and Centerspace

Given the investment horizon of 90 days Oxford Lane Capital is expected to under-perform the Centerspace. In addition to that, Oxford Lane is 1.27 times more volatile than Centerspace. It trades about -0.2 of its total potential returns per unit of risk. Centerspace is currently generating about -0.11 per unit of volatility. If you would invest  6,029  in Centerspace on May 5, 2025 and sell it today you would lose (609.00) from holding Centerspace or give up 10.1% of portfolio value over 90 days.

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

Oxford Lane Capital  vs.  Centerspace

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.

Centerspace

Risk-Adjusted Performance

Very Weak

Over the last 90 days Centerspace has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Oxford Lane and Centerspace

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

The idea behind Oxford Lane Capital and Centerspace 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.