Correlation Between Oxford Lane and IShares Tech

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

Diversification Opportunities for Oxford Lane and IShares Tech

-0.75

Correlation Coefficient

Oxford Lane  IShares Tech

Pay attention - limited upside

The 3 months correlation between Oxford and IShares is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and iShares Tech Breakthrough in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Tech Breakthrough 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 IShares Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Tech Breakthrough has no effect on the direction of Oxford Lane i.e., Oxford Lane and IShares Tech go up and down completely randomly.

Pair Corralation between Oxford Lane and IShares Tech

Given the investment horizon of 90 days Oxford Lane Capital is expected to under-perform the IShares Tech. In addition to that, Oxford Lane is 1.96 times more volatile than iShares Tech Breakthrough. It trades about -0.22 of its total potential returns per unit of risk. iShares Tech Breakthrough is currently generating about 0.22 per unit of volatility. If you would invest  5,090  in iShares Tech Breakthrough on May 7, 2025 and sell it today you would earn a total of  659.00  from holding iShares Tech Breakthrough or generate 12.95% 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.  iShares Tech Breakthrough

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.

iShares Tech Breakthrough

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Tech Breakthrough are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal fundamental indicators, IShares Tech sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oxford Lane and IShares Tech

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

The idea behind Oxford Lane Capital and iShares Tech Breakthrough 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.