Correlation Between Ford and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Ford 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 Ford and Oppenheimer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Oppenheimer Global Multi Asset, you can compare the effects of market volatilities on Ford 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 Ford with a short position of Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Oppenheimer Global.
Diversification Opportunities for Ford and Oppenheimer Global
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Oppenheimer is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Oppenheimer Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global and Ford 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 Ford Motor 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 has no effect on the direction of Ford i.e., Ford and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Ford and Oppenheimer Global
Taking into account the 90-day investment horizon Ford is expected to generate 2.05 times less return on investment than Oppenheimer Global. In addition to that, Ford is 3.24 times more volatile than Oppenheimer Global Multi Asset. It trades about 0.01 of its total potential returns per unit of risk. Oppenheimer Global Multi Asset is currently generating about 0.06 per unit of volatility. If you would invest 1,011 in Oppenheimer Global Multi Asset on September 4, 2024 and sell it today you would earn a total of 129.00 from holding Oppenheimer Global Multi Asset or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Ford Motor vs. Oppenheimer Global Multi Asset
Performance |
| Timeline |
| Ford Motor |
| Oppenheimer Global |
Ford and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Oppenheimer Global
The main advantage of trading using opposite Ford and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.The idea behind Ford Motor and Oppenheimer Global Multi Asset pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Oppenheimer Global vs. Icon Natural Resources | Oppenheimer Global vs. Energy Basic Materials | Oppenheimer Global vs. Clearbridge Energy Mlp | Oppenheimer Global vs. Firsthand Alternative Energy |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |