Correlation Between Chestnut Street and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Chestnut Street and Oppenheimer International 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 Chestnut Street and Oppenheimer International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chestnut Street Exchange and Oppenheimer International Small, you can compare the effects of market volatilities on Chestnut Street and Oppenheimer International 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 Chestnut Street with a short position of Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chestnut Street and Oppenheimer International.
Diversification Opportunities for Chestnut Street and Oppenheimer International
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chestnut and Oppenheimer is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chestnut Street Exchange and Oppenheimer International Smal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International and Chestnut Street 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 Chestnut Street Exchange are associated (or correlated) with Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Chestnut Street i.e., Chestnut Street and Oppenheimer International go up and down completely randomly.
Pair Corralation between Chestnut Street and Oppenheimer International
Assuming the 90 days horizon Chestnut Street Exchange is expected to generate 1.06 times more return on investment than Oppenheimer International. However, Chestnut Street is 1.06 times more volatile than Oppenheimer International Small. It trades about 0.2 of its potential returns per unit of risk. Oppenheimer International Small is currently generating about -0.19 per unit of risk. If you would invest 113,531 in Chestnut Street Exchange on August 27, 2024 and sell it today you would earn a total of 3,968 from holding Chestnut Street Exchange or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chestnut Street Exchange vs. Oppenheimer International Smal
Performance |
| Timeline |
| Chestnut Street Exchange |
| Oppenheimer International |
Chestnut Street and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chestnut Street and Oppenheimer International
The main advantage of trading using opposite Chestnut Street and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chestnut Street position performs unexpectedly, Oppenheimer International 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 International will offset losses from the drop in Oppenheimer International's long position.| Chestnut Street vs. Vanguard Total Stock | Chestnut Street vs. Vanguard 500 Index | Chestnut Street vs. Vanguard Total Stock | Chestnut Street vs. Vanguard Total Stock |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |