Correlation Between Knife River and Oppenheimer Russell
Can any of the company-specific risk be diversified away by investing in both Knife River and Oppenheimer Russell 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 Knife River and Oppenheimer Russell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knife River and Oppenheimer Russell 1000, you can compare the effects of market volatilities on Knife River and Oppenheimer Russell 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 Knife River with a short position of Oppenheimer Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knife River and Oppenheimer Russell.
Diversification Opportunities for Knife River and Oppenheimer Russell
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Knife and Oppenheimer is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Knife River and Oppenheimer Russell 1000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Russell 1000 and Knife River 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 Knife River are associated (or correlated) with Oppenheimer Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Russell 1000 has no effect on the direction of Knife River i.e., Knife River and Oppenheimer Russell go up and down completely randomly.
Pair Corralation between Knife River and Oppenheimer Russell
Considering the 90-day investment horizon Knife River is expected to generate 2.58 times more return on investment than Oppenheimer Russell. However, Knife River is 2.58 times more volatile than Oppenheimer Russell 1000. It trades about 0.13 of its potential returns per unit of risk. Oppenheimer Russell 1000 is currently generating about 0.06 per unit of risk. If you would invest 3,551 in Knife River on August 30, 2024 and sell it today you would earn a total of 6,724 from holding Knife River or generate 189.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 76.57% |
| Values | Daily Returns |
Knife River vs. Oppenheimer Russell 1000
Performance |
| Timeline |
| Knife River |
| Oppenheimer Russell 1000 |
Knife River and Oppenheimer Russell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knife River and Oppenheimer Russell
The main advantage of trading using opposite Knife River and Oppenheimer Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knife River position performs unexpectedly, Oppenheimer Russell 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 Russell will offset losses from the drop in Oppenheimer Russell's long position.| Knife River vs. Cemex SAB de | Knife River vs. Boise Cascad Llc | Knife River vs. CRH PLC ADR | Knife River vs. Eagle Materials |
| Oppenheimer Russell vs. Oppenheimer Russell 2000 | Oppenheimer Russell vs. Invesco SP 500 | Oppenheimer Russell vs. Invesco SP SmallCap | Oppenheimer Russell vs. Invesco SP MidCap |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |