Correlation Between Templeton Global and Oppenheimer Strategic
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Oppenheimer Strategic 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 Templeton Global and Oppenheimer Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Bond and Oppenheimer Strategic Income, you can compare the effects of market volatilities on Templeton Global and Oppenheimer Strategic 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 Templeton Global with a short position of Oppenheimer Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Oppenheimer Strategic.
Diversification Opportunities for Templeton Global and Oppenheimer Strategic
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Templeton and Oppenheimer is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Oppenheimer Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Strategic and Templeton Global 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 Templeton Global Bond are associated (or correlated) with Oppenheimer Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Strategic has no effect on the direction of Templeton Global i.e., Templeton Global and Oppenheimer Strategic go up and down completely randomly.
Pair Corralation between Templeton Global and Oppenheimer Strategic
Assuming the 90 days horizon Templeton Global is expected to generate 6.39 times less return on investment than Oppenheimer Strategic. In addition to that, Templeton Global is 1.52 times more volatile than Oppenheimer Strategic Income. It trades about 0.01 of its total potential returns per unit of risk. Oppenheimer Strategic Income is currently generating about 0.07 per unit of volatility. If you would invest 288.00 in Oppenheimer Strategic Income on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Oppenheimer Strategic Income or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Oppenheimer Strategic Income
Performance |
| Timeline |
| Templeton Global Bond |
| Oppenheimer Strategic |
Templeton Global and Oppenheimer Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Oppenheimer Strategic
The main advantage of trading using opposite Templeton Global and Oppenheimer Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Oppenheimer Strategic 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 Strategic will offset losses from the drop in Oppenheimer Strategic's long position.| Templeton Global vs. Bbh Partner Fund | Templeton Global vs. Qs Large Cap | Templeton Global vs. Volumetric Fund Volumetric | Templeton Global vs. Materials Portfolio Fidelity |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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