Correlation Between Aberdeen Global and Oppenheimer Intl
Can any of the company-specific risk be diversified away by investing in both Aberdeen Global and Oppenheimer Intl 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 Aberdeen Global and Oppenheimer Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Global Small and Oppenheimer Intl Small, you can compare the effects of market volatilities on Aberdeen Global and Oppenheimer Intl 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 Aberdeen Global with a short position of Oppenheimer Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Oppenheimer Intl.
Diversification Opportunities for Aberdeen Global and Oppenheimer Intl
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aberdeen and Oppenheimer is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Small and Oppenheimer Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Intl Small and Aberdeen Global 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 Aberdeen Global Small are associated (or correlated) with Oppenheimer Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Intl Small has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Oppenheimer Intl go up and down completely randomly.
Pair Corralation between Aberdeen Global and Oppenheimer Intl
Assuming the 90 days horizon Aberdeen Global Small is expected to generate 1.12 times more return on investment than Oppenheimer Intl. However, Aberdeen Global is 1.12 times more volatile than Oppenheimer Intl Small. It trades about 0.03 of its potential returns per unit of risk. Oppenheimer Intl Small is currently generating about 0.0 per unit of risk. If you would invest 3,002 in Aberdeen Global Small on September 1, 2024 and sell it today you would earn a total of 111.00 from holding Aberdeen Global Small or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Global Small vs. Oppenheimer Intl Small
Performance |
| Timeline |
| Aberdeen Global Small |
| Oppenheimer Intl Small |
Aberdeen Global and Oppenheimer Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and Oppenheimer Intl
The main advantage of trading using opposite Aberdeen Global and Oppenheimer Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global position performs unexpectedly, Oppenheimer Intl 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 Intl will offset losses from the drop in Oppenheimer Intl's long position.| Aberdeen Global vs. Aberdeen Emerging Markets | Aberdeen Global vs. Aberdeen Emerging Markets | Aberdeen Global vs. Aberdeen Emerging Markets | Aberdeen Global vs. Aberdeen Gbl Eq |
| Oppenheimer Intl vs. Pioneer High Yield | Oppenheimer Intl vs. Federated Institutional High | Oppenheimer Intl vs. Gmo High Yield | Oppenheimer Intl vs. Legg Mason Partners |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Correlations Find global opportunities by holding instruments from different markets |