Correlation Between Columbia Floating and Oppenheimer Senior
Can any of the company-specific risk be diversified away by investing in both Columbia Floating and Oppenheimer Senior 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 Columbia Floating and Oppenheimer Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Floating Rate and Oppenheimer Senior Floating, you can compare the effects of market volatilities on Columbia Floating and Oppenheimer Senior 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 Columbia Floating with a short position of Oppenheimer Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Floating and Oppenheimer Senior.
Diversification Opportunities for Columbia Floating and Oppenheimer Senior
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Columbia and Oppenheimer is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Floating Rate and Oppenheimer Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Senior and Columbia Floating 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 Columbia Floating Rate are associated (or correlated) with Oppenheimer Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Senior has no effect on the direction of Columbia Floating i.e., Columbia Floating and Oppenheimer Senior go up and down completely randomly.
Pair Corralation between Columbia Floating and Oppenheimer Senior
Assuming the 90 days horizon Columbia Floating is expected to generate 1.04 times less return on investment than Oppenheimer Senior. But when comparing it to its historical volatility, Columbia Floating Rate is 1.33 times less risky than Oppenheimer Senior. It trades about 0.22 of its potential returns per unit of risk. Oppenheimer Senior Floating is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 580.00 in Oppenheimer Senior Floating on September 12, 2024 and sell it today you would earn a total of 79.00 from holding Oppenheimer Senior Floating or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Floating Rate vs. Oppenheimer Senior Floating
Performance |
| Timeline |
| Columbia Floating Rate |
| Oppenheimer Senior |
Columbia Floating and Oppenheimer Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Floating and Oppenheimer Senior
The main advantage of trading using opposite Columbia Floating and Oppenheimer Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Floating position performs unexpectedly, Oppenheimer Senior 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 Senior will offset losses from the drop in Oppenheimer Senior's long position.| Columbia Floating vs. Blrc Sgy Mnp | Columbia Floating vs. Doubleline Yield Opportunities | Columbia Floating vs. Artisan High Income | Columbia Floating vs. Ambrus Core Bond |
| Oppenheimer Senior vs. Barings Emerging Markets | Oppenheimer Senior vs. Vy Jpmorgan Emerging | Oppenheimer Senior vs. Ashmore Emerging Markets | Oppenheimer Senior vs. Nasdaq 100 2x Strategy |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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