Correlation Between Barings Active and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Barings Active and Oppenheimer Global 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 Barings Active and Oppenheimer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Oppenheimer Global Multi Asset, you can compare the effects of market volatilities on Barings Active and Oppenheimer Global 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 Barings Active with a short position of Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Oppenheimer Global.
Diversification Opportunities for Barings Active and Oppenheimer Global
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Barings and Oppenheimer is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Oppenheimer Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global and Barings Active 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 Barings Active Short are associated (or correlated) with Oppenheimer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Global has no effect on the direction of Barings Active i.e., Barings Active and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Barings Active and Oppenheimer Global
Assuming the 90 days horizon Barings Active Short is expected to generate 0.23 times more return on investment than Oppenheimer Global. However, Barings Active Short is 4.37 times less risky than Oppenheimer Global. It trades about 0.16 of its potential returns per unit of risk. Oppenheimer Global Multi Asset is currently generating about 0.03 per unit of risk. If you would invest 813.00 in Barings Active Short on September 3, 2024 and sell it today you would earn a total of 112.00 from holding Barings Active Short or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Oppenheimer Global Multi Asset
Performance |
| Timeline |
| Barings Active Short |
| Oppenheimer Global |
Barings Active and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Oppenheimer Global
The main advantage of trading using opposite Barings Active and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Oppenheimer Global 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 Global will offset losses from the drop in Oppenheimer Global's long position.| Barings Active vs. Blackrock Conservative Prprdptfinstttnl | Barings Active vs. Huber Capital Diversified | Barings Active vs. Delaware Limited Term Diversified | Barings Active vs. Jhancock Diversified Macro |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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