Correlation Between Oppenheimer Main and Americafirst Large
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Main and Americafirst Large 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 Main and Americafirst Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Main Street and Americafirst Large Cap, you can compare the effects of market volatilities on Oppenheimer Main and Americafirst Large 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 Main with a short position of Americafirst Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Main and Americafirst Large.
Diversification Opportunities for Oppenheimer Main and Americafirst Large
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppenheimer and Americafirst is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Main Street and Americafirst Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Large Cap and Oppenheimer Main 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 Main Street are associated (or correlated) with Americafirst Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Large Cap has no effect on the direction of Oppenheimer Main i.e., Oppenheimer Main and Americafirst Large go up and down completely randomly.
Pair Corralation between Oppenheimer Main and Americafirst Large
Assuming the 90 days horizon Oppenheimer Main Street is expected to generate 0.94 times more return on investment than Americafirst Large. However, Oppenheimer Main Street is 1.07 times less risky than Americafirst Large. It trades about 0.07 of its potential returns per unit of risk. Americafirst Large Cap is currently generating about 0.06 per unit of risk. If you would invest 4,368 in Oppenheimer Main Street on November 28, 2024 and sell it today you would earn a total of 1,498 from holding Oppenheimer Main Street or generate 34.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Main Street vs. Americafirst Large Cap
Performance |
| Timeline |
| Oppenheimer Main Street |
| Americafirst Large Cap |
Oppenheimer Main and Americafirst Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Main and Americafirst Large
The main advantage of trading using opposite Oppenheimer Main and Americafirst Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Main position performs unexpectedly, Americafirst Large 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 Americafirst Large will offset losses from the drop in Americafirst Large's long position.| Oppenheimer Main vs. Artisan Small Cap | Oppenheimer Main vs. Parnassus Mid Cap | Oppenheimer Main vs. Mid Cap Value | Oppenheimer Main vs. Jpmorgan Large Cap |
| Americafirst Large vs. Pace High Yield | Americafirst Large vs. Pace High Yield | Americafirst Large vs. Artisan High Income | Americafirst Large vs. Prudential High Yield |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |