Correlation Between Federated Global and Oppenheimer Roc
Can any of the company-specific risk be diversified away by investing in both Federated Global and Oppenheimer Roc 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 Federated Global and Oppenheimer Roc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Global Allocation and Oppenheimer Roc Ca, you can compare the effects of market volatilities on Federated Global and Oppenheimer Roc 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 Federated Global with a short position of Oppenheimer Roc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Oppenheimer Roc.
Diversification Opportunities for Federated Global and Oppenheimer Roc
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FEDERATED and Oppenheimer is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Oppenheimer Roc Ca in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Roc Ca and Federated 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 Federated Global Allocation are associated (or correlated) with Oppenheimer Roc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Roc Ca has no effect on the direction of Federated Global i.e., Federated Global and Oppenheimer Roc go up and down completely randomly.
Pair Corralation between Federated Global and Oppenheimer Roc
Assuming the 90 days horizon Federated Global Allocation is expected to generate 1.24 times more return on investment than Oppenheimer Roc. However, Federated Global is 1.24 times more volatile than Oppenheimer Roc Ca. It trades about 0.33 of its potential returns per unit of risk. Oppenheimer Roc Ca is currently generating about 0.15 per unit of risk. If you would invest 1,947 in Federated Global Allocation on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Federated Global Allocation or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Federated Global Allocation vs. Oppenheimer Roc Ca
Performance |
| Timeline |
| Federated Global All |
| Oppenheimer Roc Ca |
Federated Global and Oppenheimer Roc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Oppenheimer Roc
The main advantage of trading using opposite Federated Global and Oppenheimer Roc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Oppenheimer Roc 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 Roc will offset losses from the drop in Oppenheimer Roc's long position.| Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Fund For | Federated Global vs. Aquagold International | Federated Global vs. Thrivent High Yield |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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