Correlation Between Aim Investment and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Aim Investment and Oppenheimer International 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 Aim Investment and Oppenheimer International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aim Investment Securities and Oppenheimer International Diversified, you can compare the effects of market volatilities on Aim Investment and Oppenheimer International 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 Aim Investment with a short position of Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim Investment and Oppenheimer International.
Diversification Opportunities for Aim Investment and Oppenheimer International
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aim and Oppenheimer is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aim Investment Securities and Oppenheimer International Dive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International and Aim Investment 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 Aim Investment Securities are associated (or correlated) with Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Aim Investment i.e., Aim Investment and Oppenheimer International go up and down completely randomly.
Pair Corralation between Aim Investment and Oppenheimer International
Assuming the 90 days horizon Aim Investment Securities is expected to generate 0.66 times more return on investment than Oppenheimer International. However, Aim Investment Securities is 1.52 times less risky than Oppenheimer International. It trades about 0.07 of its potential returns per unit of risk. Oppenheimer International Diversified is currently generating about 0.01 per unit of risk. If you would invest 1,665 in Aim Investment Securities on November 7, 2024 and sell it today you would earn a total of 313.00 from holding Aim Investment Securities or generate 18.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aim Investment Securities vs. Oppenheimer International Dive
Performance |
| Timeline |
| Aim Investment Securities |
| Oppenheimer International |
Aim Investment and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aim Investment and Oppenheimer International
The main advantage of trading using opposite Aim Investment and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim Investment position performs unexpectedly, Oppenheimer International 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 International will offset losses from the drop in Oppenheimer International's long position.| Aim Investment vs. Praxis Small Cap | Aim Investment vs. Needham Small Cap | Aim Investment vs. Sp Smallcap 600 | Aim Investment vs. Artisan Small Cap |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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