Correlation Between Oxford Lane and SP Funds

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

Diversification Opportunities for Oxford Lane and SP Funds

-0.79

Correlation Coefficient

Oxford Lane  SP Funds

Pay attention - limited upside

The 3 months correlation between Oxford and SPUS is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and SP Funds SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Funds SP 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 SP Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Funds SP has no effect on the direction of Oxford Lane i.e., Oxford Lane and SP Funds go up and down completely randomly.

Pair Corralation between Oxford Lane and SP Funds

Given the investment horizon of 90 days Oxford Lane Capital is expected to under-perform the SP Funds. In addition to that, Oxford Lane is 2.09 times more volatile than SP Funds SP. It trades about -0.21 of its total potential returns per unit of risk. SP Funds SP is currently generating about 0.28 per unit of volatility. If you would invest  3,900  in SP Funds SP on May 6, 2025 and sell it today you would earn a total of  632.00  from holding SP Funds SP or generate 16.21% return on investment over 90 days.

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

Oxford Lane Capital  vs.  SP Funds SP

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.

SP Funds SP

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SP Funds SP are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SP Funds unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oxford Lane and SP Funds

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

The idea behind Oxford Lane Capital and SP Funds SP 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.