Correlation Between Oxford Lane and Data IO

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

Diversification Opportunities for Oxford Lane and Data IO

0.86

Correlation Coefficient

Oxford Lane  Data IO

Very poor diversification

The 3 months correlation between Oxford and Data is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Data IO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data IO 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 Data IO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data IO has no effect on the direction of Oxford Lane i.e., Oxford Lane and Data IO go up and down completely randomly.

Pair Corralation between Oxford Lane and Data IO

Given the investment horizon of 90 days Oxford Lane Capital is expected to generate 0.61 times more return on investment than Data IO. However, Oxford Lane Capital is 1.64 times less risky than Data IO. It trades about -0.09 of its potential returns per unit of risk. Data IO is currently generating about -0.1 per unit of risk. If you would invest  1,619  in Oxford Lane Capital on September 10, 2025 and sell it today you would lose (160.00) from holding Oxford Lane Capital or give up 9.88% of portfolio value over 90 days.

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

Oxford Lane Capital  vs.  Data IO

Oxford Lane Capital

Risk-Adjusted Performance

Weakest

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 latest uncertain performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Data IO

Risk-Adjusted Performance

Weakest

Over the last 90 days Data IO has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Oxford Lane and Data IO

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

The idea behind Oxford Lane Capital and Data IO 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..