Correlation Between Oxford Lane and Ratos AB

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

Diversification Opportunities for Oxford Lane and Ratos AB

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Oxford and Ratos is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Ratos AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratos AB 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 Ratos AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratos AB has no effect on the direction of Oxford Lane i.e., Oxford Lane and Ratos AB go up and down completely randomly.

Pair Corralation between Oxford Lane and Ratos AB

If you would invest  360.00  in Ratos AB on September 13, 2025 and sell it today you would earn a total of  0.00  from holding Ratos AB or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy1.59%
ValuesDaily Returns

Oxford Lane Capital  vs.  Ratos AB

 Performance 
       Timeline  
Oxford Lane Capital 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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 uncertain performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
Ratos AB 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Ratos AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Ratos AB is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Oxford Lane and Ratos AB Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oxford Lane and Ratos AB

The main advantage of trading using opposite Oxford Lane and Ratos AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Ratos AB 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 Ratos AB will offset losses from the drop in Ratos AB's long position.
The idea behind Oxford Lane Capital and Ratos AB 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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