Correlation Between Amg Managers and Oppenheimer Intl
Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and Oppenheimer Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Cadence and Oppenheimer Intl Small, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of Oppenheimer Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Oppenheimer Intl.
Diversification Opportunities for Amg Managers and Oppenheimer Intl
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Amg and Oppenheimer is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Cadence 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 Amg Managers 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 Amg Managers Cadence 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 Amg Managers i.e., Amg Managers and Oppenheimer Intl go up and down completely randomly.
Pair Corralation between Amg Managers and Oppenheimer Intl
Assuming the 90 days horizon Amg Managers Cadence is expected to under-perform the Oppenheimer Intl. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Managers Cadence is 1.33 times less risky than Oppenheimer Intl. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Oppenheimer Intl Small is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,204 in Oppenheimer Intl Small on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Oppenheimer Intl Small or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Cadence vs. Oppenheimer Intl Small
Performance |
| Timeline |
| Amg Managers Cadence |
| Oppenheimer Intl Small |
Amg Managers and Oppenheimer Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Oppenheimer Intl
The main advantage of trading using opposite Amg Managers and Oppenheimer Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.| Amg Managers vs. Oppenheimer Intl Small | Amg Managers vs. Oppenheimer Intl Small | Amg Managers vs. HUMANA INC | Amg Managers vs. Aquagold International |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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