Correlation Between Barings Emerging and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Barings Emerging 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 Emerging 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 Emerging Markets and Oppenheimer Global Strtgc, you can compare the effects of market volatilities on Barings Emerging 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 Emerging with a short position of Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Oppenheimer Global.
Diversification Opportunities for Barings Emerging and Oppenheimer Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Barings and Oppenheimer is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Oppenheimer Global Strtgc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global Strtgc and Barings Emerging 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 Emerging Markets 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 Strtgc has no effect on the direction of Barings Emerging i.e., Barings Emerging and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Barings Emerging and Oppenheimer Global
Assuming the 90 days horizon Barings Emerging Markets is expected to under-perform the Oppenheimer Global. In addition to that, Barings Emerging is 1.07 times more volatile than Oppenheimer Global Strtgc. It trades about -0.08 of its total potential returns per unit of risk. Oppenheimer Global Strtgc is currently generating about 0.14 per unit of volatility. If you would invest 308.00 in Oppenheimer Global Strtgc on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Oppenheimer Global Strtgc or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Oppenheimer Global Strtgc
Performance |
| Timeline |
| Barings Emerging Markets |
| Oppenheimer Global Strtgc |
Barings Emerging and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Oppenheimer Global
The main advantage of trading using opposite Barings Emerging and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging 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 Emerging vs. Fidelity New Markets | Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. SCOR PK |
| Oppenheimer Global vs. Doubleline Yield Opportunities | Oppenheimer Global vs. T Rowe Price | Oppenheimer Global vs. Touchstone Premium Yield | Oppenheimer Global vs. Ishares Municipal Bond |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |