Correlation Between Floating Rate and Oppenheimer Senior
Can any of the company-specific risk be diversified away by investing in both Floating Rate 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 Floating Rate and Oppenheimer Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Floating Rate Fund and Oppenheimer Senior Floating, you can compare the effects of market volatilities on Floating Rate 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 Floating Rate with a short position of Oppenheimer Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Floating Rate and Oppenheimer Senior.
Diversification Opportunities for Floating Rate and Oppenheimer Senior
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Floating and Oppenheimer is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Floating Rate Fund and Oppenheimer Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Senior and Floating Rate 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 Floating Rate Fund 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 Floating Rate i.e., Floating Rate and Oppenheimer Senior go up and down completely randomly.
Pair Corralation between Floating Rate and Oppenheimer Senior
Assuming the 90 days horizon Floating Rate Fund is expected to generate 0.74 times more return on investment than Oppenheimer Senior. However, Floating Rate Fund is 1.35 times less risky than Oppenheimer Senior. It trades about 0.24 of its potential returns per unit of risk. Oppenheimer Senior Floating is currently generating about 0.18 per unit of risk. If you would invest 813.00 in Floating Rate Fund on August 24, 2024 and sell it today you would earn a total of 5.00 from holding Floating Rate Fund or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Floating Rate Fund vs. Oppenheimer Senior Floating
Performance |
| Timeline |
| Floating Rate |
| Oppenheimer Senior |
Floating Rate and Oppenheimer Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Floating Rate and Oppenheimer Senior
The main advantage of trading using opposite Floating Rate and Oppenheimer Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Floating Rate 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.| Floating Rate vs. Great West Goldman Sachs | Floating Rate vs. The Gold Bullion | Floating Rate vs. Gabelli Gold Fund | Floating Rate vs. James Balanced Golden |
| Oppenheimer Senior vs. Gmo Resources | Oppenheimer Senior vs. Firsthand Alternative Energy | Oppenheimer Senior vs. Hennessy Bp Energy | Oppenheimer Senior vs. Franklin 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |