Correlation Between Oxford Lane and Global Allocation

Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Global Allocation 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 Global Allocation 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 Global Allocation 6040, you can compare the effects of market volatilities on Oxford Lane and Global Allocation 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 Global Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Global Allocation.

Diversification Opportunities for Oxford Lane and Global Allocation

-0.78

Correlation Coefficient

Oxford Lane  Global Allocation

Pay attention - limited upside

The 3 months correlation between Oxford and Global is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Global Allocation 6040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Allocation 6040 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 Global Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Allocation 6040 has no effect on the direction of Oxford Lane i.e., Oxford Lane and Global Allocation go up and down completely randomly.

Pair Corralation between Oxford Lane and Global Allocation

Given the investment horizon of 90 days Oxford Lane Capital is expected to under-perform the Global Allocation. In addition to that, Oxford Lane is 4.37 times more volatile than Global Allocation 6040. It trades about -0.2 of its total potential returns per unit of risk. Global Allocation 6040 is currently generating about 0.24 per unit of volatility. If you would invest  2,078  in Global Allocation 6040 on May 6, 2025 and sell it today you would earn a total of  134.00  from holding Global Allocation 6040 or generate 6.45% return on investment over 90 days.

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

Oxford Lane Capital  vs.  Global Allocation 6040

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.

Global Allocation 6040

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global Allocation 6040 are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Global Allocation may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Oxford Lane and Global Allocation

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

The idea behind Oxford Lane Capital and Global Allocation 6040 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 Positions Ratings module to 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.