Correlation Between Aston/crosswind Small and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Aston/crosswind Small and Oppenheimer Main 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 Aston/crosswind Small and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoncrosswind Small Cap and Oppenheimer Main Street, you can compare the effects of market volatilities on Aston/crosswind Small and Oppenheimer Main 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 Aston/crosswind Small with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston/crosswind Small and Oppenheimer Main.
Diversification Opportunities for Aston/crosswind Small and Oppenheimer Main
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aston/crosswind and Oppenheimer is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Astoncrosswind Small Cap and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street and Aston/crosswind Small 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 Astoncrosswind Small Cap are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Street has no effect on the direction of Aston/crosswind Small i.e., Aston/crosswind Small and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Aston/crosswind Small and Oppenheimer Main
Assuming the 90 days horizon Aston/crosswind Small is expected to generate 1.1 times less return on investment than Oppenheimer Main. In addition to that, Aston/crosswind Small is 1.05 times more volatile than Oppenheimer Main Street. It trades about 0.19 of its total potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.22 per unit of volatility. If you would invest 2,146 in Oppenheimer Main Street on November 8, 2024 and sell it today you would earn a total of 81.00 from holding Oppenheimer Main Street or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Astoncrosswind Small Cap vs. Oppenheimer Main Street
Performance |
| Timeline |
| Astoncrosswind Small Cap |
| Oppenheimer Main Street |
Aston/crosswind Small and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston/crosswind Small and Oppenheimer Main
The main advantage of trading using opposite Aston/crosswind Small and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston/crosswind Small position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main's long position.| Aston/crosswind Small vs. Baron Real Estate | Aston/crosswind Small vs. Eventide Gilead Fund | Aston/crosswind Small vs. Buffalo Emerging Opportunities | Aston/crosswind Small vs. Large Cap Growth |
| Oppenheimer Main vs. Oppenheimer Intl Small | Oppenheimer Main vs. Oppenheimer Main Street | Oppenheimer Main vs. Oppenheimer Global Strtgc | Oppenheimer Main vs. Oppenheimer Strat Incm |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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