Correlation Between Ab Impact and Oppenheimer Corporate
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Oppenheimer Corporate 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 Ab Impact and Oppenheimer Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Oppenheimer Corporate Bd, you can compare the effects of market volatilities on Ab Impact and Oppenheimer Corporate 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 Ab Impact with a short position of Oppenheimer Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Oppenheimer Corporate.
Diversification Opportunities for Ab Impact and Oppenheimer Corporate
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ABIMX and Oppenheimer is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Oppenheimer Corporate Bd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Corporate and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Oppenheimer Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Corporate has no effect on the direction of Ab Impact i.e., Ab Impact and Oppenheimer Corporate go up and down completely randomly.
Pair Corralation between Ab Impact and Oppenheimer Corporate
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 0.79 times more return on investment than Oppenheimer Corporate. However, Ab Impact Municipal is 1.27 times less risky than Oppenheimer Corporate. It trades about 0.09 of its potential returns per unit of risk. Oppenheimer Corporate Bd is currently generating about 0.05 per unit of risk. If you would invest 945.00 in Ab Impact Municipal on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Ab Impact Municipal or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ab Impact Municipal vs. Oppenheimer Corporate Bd
Performance |
| Timeline |
| Ab Impact Municipal |
| Oppenheimer Corporate |
Ab Impact and Oppenheimer Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Oppenheimer Corporate
The main advantage of trading using opposite Ab Impact and Oppenheimer Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Oppenheimer Corporate 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 Oppenheimer Corporate will offset losses from the drop in Oppenheimer Corporate's long position.| Ab Impact vs. SCOR PK | Ab Impact vs. Morningstar Unconstrained Allocation | Ab Impact vs. Thrivent High Yield | Ab Impact vs. Via Renewables |
| Oppenheimer Corporate vs. T Rowe Price | Oppenheimer Corporate vs. Counterpoint Tactical Municipal | Oppenheimer Corporate vs. Ishares Municipal Bond | Oppenheimer Corporate vs. Ab Impact Municipal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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