Correlation Between Oppenheimer Rochester and New York
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Rochester and New York 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 Oppenheimer Rochester and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Rochester Ltdterm and New York Municipal, you can compare the effects of market volatilities on Oppenheimer Rochester and New York 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 Oppenheimer Rochester with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Rochester and New York.
Diversification Opportunities for Oppenheimer Rochester and New York
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppenheimer and New is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Rochester Ltdterm and New York Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Municipal and Oppenheimer Rochester 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 Oppenheimer Rochester Ltdterm are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Municipal has no effect on the direction of Oppenheimer Rochester i.e., Oppenheimer Rochester and New York go up and down completely randomly.
Pair Corralation between Oppenheimer Rochester and New York
Assuming the 90 days horizon Oppenheimer Rochester Ltdterm is expected to generate 1.37 times more return on investment than New York. However, Oppenheimer Rochester is 1.37 times more volatile than New York Municipal. It trades about 0.06 of its potential returns per unit of risk. New York Municipal is currently generating about 0.06 per unit of risk. If you would invest 279.00 in Oppenheimer Rochester Ltdterm on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Oppenheimer Rochester Ltdterm or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Rochester Ltdterm vs. New York Municipal
Performance |
| Timeline |
| Oppenheimer Rochester |
| New York Municipal |
Oppenheimer Rochester and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Rochester and New York
The main advantage of trading using opposite Oppenheimer Rochester and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Rochester position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Oppenheimer Rochester vs. Ab Impact Municipal | Oppenheimer Rochester vs. Ambrus Core Bond | Oppenheimer Rochester vs. California Bond Fund | Oppenheimer Rochester vs. Versatile Bond Portfolio |
| New York vs. Ab Global E | New York vs. Ab Global E | New York vs. Ab Global E | New York vs. Ab Minnesota Portfolio |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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