Correlation Between Barings Global and Oppenheimer Rochester
Can any of the company-specific risk be diversified away by investing in both Barings Global and Oppenheimer Rochester 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 Global and Oppenheimer Rochester into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Oppenheimer Rochester High, you can compare the effects of market volatilities on Barings Global and Oppenheimer Rochester 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 Global with a short position of Oppenheimer Rochester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Oppenheimer Rochester.
Diversification Opportunities for Barings Global and Oppenheimer Rochester
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barings and Oppenheimer is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Oppenheimer Rochester High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Rochester and Barings 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 Barings Global Floating are associated (or correlated) with Oppenheimer Rochester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Rochester has no effect on the direction of Barings Global i.e., Barings Global and Oppenheimer Rochester go up and down completely randomly.
Pair Corralation between Barings Global and Oppenheimer Rochester
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.5 times more return on investment than Oppenheimer Rochester. However, Barings Global Floating is 1.99 times less risky than Oppenheimer Rochester. It trades about 0.21 of its potential returns per unit of risk. Oppenheimer Rochester High is currently generating about 0.07 per unit of risk. If you would invest 771.00 in Barings Global Floating on September 12, 2024 and sell it today you would earn a total of 108.00 from holding Barings Global Floating or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Oppenheimer Rochester High
Performance |
| Timeline |
| Barings Global Floating |
| Oppenheimer Rochester |
Barings Global and Oppenheimer Rochester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Oppenheimer Rochester
The main advantage of trading using opposite Barings Global and Oppenheimer Rochester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Oppenheimer Rochester 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 Rochester will offset losses from the drop in Oppenheimer Rochester's long position.| Barings Global vs. Janus High Yield Fund | Barings Global vs. Buffalo High Yield | Barings Global vs. Pace High Yield | Barings Global vs. Msift High Yield |
| Oppenheimer Rochester vs. Nuveen High Yield | Oppenheimer Rochester vs. Nuveen High Yield | Oppenheimer Rochester vs. SCOR PK | Oppenheimer Rochester vs. Morningstar Unconstrained Allocation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |