Correlation Between Oxford Lane and DSV Panalpina

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

Diversification Opportunities for Oxford Lane and DSV Panalpina

-0.29

Correlation Coefficient

Oxford Lane  DSV Panalpina

Very good diversification

The 3 months correlation between Oxford and DSV is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and DSV Panalpina AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSV Panalpina AS 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 DSV Panalpina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSV Panalpina AS has no effect on the direction of Oxford Lane i.e., Oxford Lane and DSV Panalpina go up and down completely randomly.

Pair Corralation between Oxford Lane and DSV Panalpina

Given the investment horizon of 90 days Oxford Lane Capital is expected to under-perform the DSV Panalpina. But the stock apears to be less risky and, when comparing its historical volatility, Oxford Lane Capital is 1.09 times less risky than DSV Panalpina. The stock trades about -0.21 of its potential returns per unit of risk. The DSV Panalpina AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  22,040  in DSV Panalpina AS on May 6, 2025 and sell it today you would earn a total of  270.00  from holding DSV Panalpina AS or generate 1.23% return on investment over 90 days.

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

Oxford Lane Capital  vs.  DSV Panalpina AS

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.

DSV Panalpina AS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DSV Panalpina AS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, DSV Panalpina is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Oxford Lane and DSV Panalpina

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

The idea behind Oxford Lane Capital and DSV Panalpina AS 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.