Correlation Between Fabxx and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Fabxx and Oppenheimer Main 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 Fabxx and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fabxx and Oppenheimer Main Strt, you can compare the effects of market volatilities on Fabxx and Oppenheimer Main 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 Fabxx with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fabxx and Oppenheimer Main.
Diversification Opportunities for Fabxx and Oppenheimer Main
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fabxx and Oppenheimer is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fabxx and Oppenheimer Main Strt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Strt and Fabxx 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 Fabxx are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Strt has no effect on the direction of Fabxx i.e., Fabxx and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Fabxx and Oppenheimer Main
Assuming the 90 days horizon Fabxx is expected to under-perform the Oppenheimer Main. In addition to that, Fabxx is 5.28 times more volatile than Oppenheimer Main Strt. It trades about -0.03 of its total potential returns per unit of risk. Oppenheimer Main Strt is currently generating about 0.09 per unit of volatility. If you would invest 2,033 in Oppenheimer Main Strt on September 12, 2024 and sell it today you would earn a total of 940.00 from holding Oppenheimer Main Strt or generate 46.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.56% |
| Values | Daily Returns |
Fabxx vs. Oppenheimer Main Strt
Performance |
| Timeline |
| Fabxx |
| Oppenheimer Main Strt |
Fabxx and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fabxx and Oppenheimer Main
The main advantage of trading using opposite Fabxx and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fabxx position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main's long position.| Fabxx vs. Vanguard Total Stock | Fabxx vs. Vanguard 500 Index | Fabxx vs. Vanguard Total Stock | Fabxx vs. Vanguard Total Stock |
| Oppenheimer Main vs. Federated Hermes Inflation | Oppenheimer Main vs. Lord Abbett Inflation | Oppenheimer Main vs. Guggenheim Managed Futures | Oppenheimer Main vs. Schwab Treasury Inflation |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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