Correlation Between Auer Growth and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Auer Growth 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 Auer Growth and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Oppenheimer Main Street, you can compare the effects of market volatilities on Auer Growth 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 Auer Growth with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Oppenheimer Main.
Diversification Opportunities for Auer Growth and Oppenheimer Main
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Auer and Oppenheimer is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund 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 Auer Growth 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 Auer Growth Fund 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 Auer Growth i.e., Auer Growth and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Auer Growth and Oppenheimer Main
Assuming the 90 days horizon Auer Growth Fund is expected to generate 0.87 times more return on investment than Oppenheimer Main. However, Auer Growth Fund is 1.15 times less risky than Oppenheimer Main. It trades about 0.08 of its potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.07 per unit of risk. If you would invest 1,482 in Auer Growth Fund on August 25, 2024 and sell it today you would earn a total of 296.00 from holding Auer Growth Fund or generate 19.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Oppenheimer Main Street
Performance |
| Timeline |
| Auer Growth Fund |
| Oppenheimer Main Street |
Auer Growth and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Oppenheimer Main
The main advantage of trading using opposite Auer Growth and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth 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.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Oppenheimer Main vs. Auer Growth Fund | Oppenheimer Main vs. Blackrock Sm Cap | Oppenheimer Main vs. Materials Portfolio Fidelity | Oppenheimer Main vs. Rational Special Situations |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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