Correlation Between Gmo Global and Oppenheimer Senior
Can any of the company-specific risk be diversified away by investing in both Gmo Global and Oppenheimer Senior 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 Gmo Global and Oppenheimer Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Global Equity and Oppenheimer Senior Floating, you can compare the effects of market volatilities on Gmo Global and Oppenheimer Senior 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 Gmo Global with a short position of Oppenheimer Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Global and Oppenheimer Senior.
Diversification Opportunities for Gmo Global and Oppenheimer Senior
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gmo and Oppenheimer is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Equity and Oppenheimer Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Senior and Gmo 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 Gmo Global Equity are associated (or correlated) with Oppenheimer Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Senior has no effect on the direction of Gmo Global i.e., Gmo Global and Oppenheimer Senior go up and down completely randomly.
Pair Corralation between Gmo Global and Oppenheimer Senior
Assuming the 90 days horizon Gmo Global Equity is expected to generate 3.13 times more return on investment than Oppenheimer Senior. However, Gmo Global is 3.13 times more volatile than Oppenheimer Senior Floating. It trades about 0.08 of its potential returns per unit of risk. Oppenheimer Senior Floating is currently generating about 0.08 per unit of risk. If you would invest 2,907 in Gmo Global Equity on November 27, 2024 and sell it today you would earn a total of 28.00 from holding Gmo Global Equity or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Global Equity vs. Oppenheimer Senior Floating
Performance |
| Timeline |
| Gmo Global Equity |
| Oppenheimer Senior |
Gmo Global and Oppenheimer Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Global and Oppenheimer Senior
The main advantage of trading using opposite Gmo Global and Oppenheimer Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Global position performs unexpectedly, Oppenheimer Senior 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 Senior will offset losses from the drop in Oppenheimer Senior's long position.| Gmo Global vs. Tiaa Cref Large Cap Growth | Gmo Global vs. Lord Abbett Affiliated | Gmo Global vs. Old Westbury Large | Gmo Global vs. Guidemark Large Cap |
| Oppenheimer Senior vs. Metropolitan West Ultra | Oppenheimer Senior vs. Transamerica Short Term Bond | Oppenheimer Senior vs. Seix Govt Sec | Oppenheimer Senior vs. Fidelity Flex Servative |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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