Correlation Between Federated Short and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Federated Short 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 Federated Short and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Short Term Income and Oppenheimer Main Street, you can compare the effects of market volatilities on Federated Short 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 Federated Short with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Short and Oppenheimer Main.
Diversification Opportunities for Federated Short and Oppenheimer Main
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Federated and Oppenheimer is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Federated Short Term Income and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street and Federated Short 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 Short Term Income 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 Street has no effect on the direction of Federated Short i.e., Federated Short and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Federated Short and Oppenheimer Main
Assuming the 90 days horizon Federated Short Term Income is expected to generate 0.16 times more return on investment than Oppenheimer Main. However, Federated Short Term Income is 6.33 times less risky than Oppenheimer Main. It trades about 0.24 of its potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.01 per unit of risk. If you would invest 841.00 in Federated Short Term Income on November 30, 2024 and sell it today you would earn a total of 12.00 from holding Federated Short Term Income or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Short Term Income vs. Oppenheimer Main Street
Performance |
| Timeline |
| Federated Short Term |
Risk-Adjusted Performance
Good
Weak | Strong |
| Oppenheimer Main Street |
Federated Short and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Short and Oppenheimer Main
The main advantage of trading using opposite Federated Short and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Short 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.| Federated Short vs. Pnc Balanced Allocation | Federated Short vs. Alternative Asset Allocation | Federated Short vs. The Hartford Servative | Federated Short vs. Washington Mutual Investors |
| Oppenheimer Main vs. Doubleline Emerging Markets | Oppenheimer Main vs. Ab Bond Inflation | Oppenheimer Main vs. Gmo High Yield | Oppenheimer Main vs. Touchstone Ultra Short |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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