Correlation Between Oxford Lane and ISpecimen
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and ISpecimen 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 ISpecimen 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 iSpecimen, you can compare the effects of market volatilities on Oxford Lane and ISpecimen 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 ISpecimen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and ISpecimen.
Diversification Opportunities for Oxford Lane and ISpecimen
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oxford and ISpecimen is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen 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 ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of Oxford Lane i.e., Oxford Lane and ISpecimen go up and down completely randomly.
Pair Corralation between Oxford Lane and ISpecimen
Given the investment horizon of 90 days Oxford Lane Capital is expected to under-perform the ISpecimen. But the stock apears to be less risky and, when comparing its historical volatility, Oxford Lane Capital is 3.06 times less risky than ISpecimen. The stock trades about -0.2 of its potential returns per unit of risk. The iSpecimen is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 122.00 in iSpecimen on May 5, 2025 and sell it today you would earn a total of 25.00 from holding iSpecimen or generate 20.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Oxford Lane Capital vs. iSpecimen
Performance |
Timeline |
Oxford Lane Capital |
iSpecimen |
Oxford Lane and ISpecimen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oxford Lane and ISpecimen
The main advantage of trading using opposite Oxford Lane and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, ISpecimen 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 ISpecimen will offset losses from the drop in ISpecimen's long position.Oxford Lane vs. Cornerstone Strategic Value | Oxford Lane vs. Cornerstone Strategic Return | Oxford Lane vs. Eagle Point Credit | Oxford Lane vs. Guggenheim Strategic Opportunities |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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