Correlation Between Federated International and Oppenheimer Intl
Can any of the company-specific risk be diversified away by investing in both Federated International and Oppenheimer Intl 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 International and Oppenheimer Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated International Small Mid and Oppenheimer Intl Small, you can compare the effects of market volatilities on Federated International and Oppenheimer Intl 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 International with a short position of Oppenheimer Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated International and Oppenheimer Intl.
Diversification Opportunities for Federated International and Oppenheimer Intl
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Federated and Oppenheimer is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Federated International Small and Oppenheimer Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Intl Small and Federated International 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 International Small Mid are associated (or correlated) with Oppenheimer Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Intl Small has no effect on the direction of Federated International i.e., Federated International and Oppenheimer Intl go up and down completely randomly.
Pair Corralation between Federated International and Oppenheimer Intl
Assuming the 90 days horizon Federated International Small Mid is expected to generate 1.14 times more return on investment than Oppenheimer Intl. However, Federated International is 1.14 times more volatile than Oppenheimer Intl Small. It trades about 0.2 of its potential returns per unit of risk. Oppenheimer Intl Small is currently generating about 0.13 per unit of risk. If you would invest 3,966 in Federated International Small Mid on September 13, 2024 and sell it today you would earn a total of 102.00 from holding Federated International Small Mid or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated International Small vs. Oppenheimer Intl Small
Performance |
| Timeline |
| Federated International |
| Oppenheimer Intl Small |
Federated International and Oppenheimer Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated International and Oppenheimer Intl
The main advantage of trading using opposite Federated International and Oppenheimer Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated International position performs unexpectedly, Oppenheimer Intl 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 Intl will offset losses from the drop in Oppenheimer Intl's long position.| Federated International vs. Jhancock Disciplined Value | Federated International vs. Cb Large Cap | Federated International vs. Virtus Nfj Large Cap | Federated International vs. Large Cap Growth Profund |
| Oppenheimer Intl vs. Doubleline Yield Opportunities | Oppenheimer Intl vs. Touchstone Premium Yield | Oppenheimer Intl vs. Bbh Intermediate Municipal | Oppenheimer Intl vs. Artisan High Income |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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