Correlation Between Oxford Lane and MKDWELL Tech

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

Diversification Opportunities for Oxford Lane and MKDWELL Tech

0.78

Correlation Coefficient

Oxford Lane  MKDWELL Tech

Poor diversification

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

Pair Corralation between Oxford Lane and MKDWELL Tech

Given the investment horizon of 90 days Oxford Lane Capital is expected to generate 0.4 times more return on investment than MKDWELL Tech. However, Oxford Lane Capital is 2.51 times less risky than MKDWELL Tech. It trades about -0.21 of its potential returns per unit of risk. MKDWELL Tech Ordinary is currently generating about -0.15 per unit of risk. If you would invest  443.00  in Oxford Lane Capital on May 6, 2025 and sell it today you would lose (98.00) from holding Oxford Lane Capital or give up 22.12% 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.  MKDWELL Tech Ordinary

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.

MKDWELL Tech Ordinary

Risk-Adjusted Performance

Very Weak

Over the last 90 days MKDWELL Tech Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Oxford Lane and MKDWELL Tech

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

The idea behind Oxford Lane Capital and MKDWELL Tech Ordinary 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.