Correlation Between Aim Investment and Oppenheimer Rochester
Can any of the company-specific risk be diversified away by investing in both Aim Investment and Oppenheimer Rochester 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 Rochester into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aim Investment Funds and Oppenheimer Rochester, you can compare the effects of market volatilities on Aim Investment and Oppenheimer Rochester 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 Rochester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim Investment and Oppenheimer Rochester.
Diversification Opportunities for Aim Investment and Oppenheimer Rochester
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aim and Oppenheimer is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Aim Investment Funds and Oppenheimer Rochester in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Rochester 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 Funds are associated (or correlated) with Oppenheimer Rochester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Rochester has no effect on the direction of Aim Investment i.e., Aim Investment and Oppenheimer Rochester go up and down completely randomly.
Pair Corralation between Aim Investment and Oppenheimer Rochester
Assuming the 90 days horizon Aim Investment Funds is expected to generate 1.39 times more return on investment than Oppenheimer Rochester. However, Aim Investment is 1.39 times more volatile than Oppenheimer Rochester. It trades about 0.05 of its potential returns per unit of risk. Oppenheimer Rochester is currently generating about 0.06 per unit of risk. If you would invest 384.00 in Aim Investment Funds on September 3, 2024 and sell it today you would earn a total of 49.00 from holding Aim Investment Funds or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aim Investment Funds vs. Oppenheimer Rochester
Performance |
| Timeline |
| Aim Investment Funds |
| Oppenheimer Rochester |
Aim Investment and Oppenheimer Rochester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aim Investment and Oppenheimer Rochester
The main advantage of trading using opposite Aim Investment and Oppenheimer Rochester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim Investment position performs unexpectedly, Oppenheimer Rochester 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 Rochester will offset losses from the drop in Oppenheimer Rochester's long position.| Aim Investment vs. Rbc Emerging Markets | Aim Investment vs. Legg Mason Partners | Aim Investment vs. Dodge Cox Emerging | Aim Investment vs. Black Oak Emerging |
| Oppenheimer Rochester vs. Opnhmr Rchstr Ltd | Oppenheimer Rochester vs. Oppenheimer Rochester High | Oppenheimer Rochester vs. Franklin New York | Oppenheimer Rochester vs. Oppenheimer Rchster Amt |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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