Correlation Between Icon Natural and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Icon Natural 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 Icon Natural and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Natural Resources and Oppenheimer Main Street, you can compare the effects of market volatilities on Icon Natural 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 Icon Natural with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Oppenheimer Main.
Diversification Opportunities for Icon Natural and Oppenheimer Main
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Icon and Oppenheimer is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources 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 Icon Natural 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 Icon Natural Resources 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 Icon Natural i.e., Icon Natural and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Icon Natural and Oppenheimer Main
Assuming the 90 days horizon Icon Natural is expected to generate 3.11 times less return on investment than Oppenheimer Main. In addition to that, Icon Natural is 1.39 times more volatile than Oppenheimer Main Street. It trades about 0.07 of its total potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.31 per unit of volatility. If you would invest 2,328 in Oppenheimer Main Street on September 3, 2024 and sell it today you would earn a total of 223.00 from holding Oppenheimer Main Street or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Natural Resources vs. Oppenheimer Main Street
Performance |
| Timeline |
| Icon Natural Resources |
| Oppenheimer Main Street |
Icon Natural and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Oppenheimer Main
The main advantage of trading using opposite Icon Natural and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural 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.| Icon Natural vs. Icon Financial Fund | Icon Natural vs. Dreyfus Natural Resources | Icon Natural vs. Icon Natural Resources | Icon Natural vs. Icon Information Technology |
| Oppenheimer Main vs. Gmo Resources | Oppenheimer Main vs. Hennessy Bp Energy | Oppenheimer Main vs. Invesco Energy Fund | Oppenheimer Main vs. Icon Natural Resources |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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