Correlation Between Chase Growth and Oppenheimer Rochester
Can any of the company-specific risk be diversified away by investing in both Chase Growth 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 Chase Growth and Oppenheimer Rochester into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and Oppenheimer Rochester High, you can compare the effects of market volatilities on Chase Growth 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 Chase Growth with a short position of Oppenheimer Rochester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Oppenheimer Rochester.
Diversification Opportunities for Chase Growth and Oppenheimer Rochester
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chase and Oppenheimer is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Oppenheimer Rochester High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Rochester and Chase 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 Chase Growth Fund 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 Chase Growth i.e., Chase Growth and Oppenheimer Rochester go up and down completely randomly.
Pair Corralation between Chase Growth and Oppenheimer Rochester
Assuming the 90 days horizon Chase Growth Fund is expected to generate 3.33 times more return on investment than Oppenheimer Rochester. However, Chase Growth is 3.33 times more volatile than Oppenheimer Rochester High. It trades about 0.12 of its potential returns per unit of risk. Oppenheimer Rochester High is currently generating about 0.14 per unit of risk. If you would invest 1,521 in Chase Growth Fund on September 1, 2024 and sell it today you would earn a total of 241.00 from holding Chase Growth Fund or generate 15.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Chase Growth Fund vs. Oppenheimer Rochester High
Performance |
| Timeline |
| Chase Growth |
| Oppenheimer Rochester |
Chase Growth and Oppenheimer Rochester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Oppenheimer Rochester
The main advantage of trading using opposite Chase Growth and Oppenheimer Rochester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth 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.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
| Oppenheimer Rochester vs. Short Oil Gas | Oppenheimer Rochester vs. Energy Basic Materials | Oppenheimer Rochester vs. Gamco Natural Resources | Oppenheimer Rochester vs. Dreyfus Natural Resources |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |