Correlation Between Mfs Technology and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Mfs Technology and Oppenheimer Main 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 Mfs Technology and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Technology Fund and Oppenheimer Main Street, you can compare the effects of market volatilities on Mfs Technology and Oppenheimer Main 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 Mfs Technology with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Technology and Oppenheimer Main.
Diversification Opportunities for Mfs Technology and Oppenheimer Main
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Oppenheimer is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street and Mfs Technology 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 Mfs Technology Fund are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Street has no effect on the direction of Mfs Technology i.e., Mfs Technology and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Mfs Technology and Oppenheimer Main
Assuming the 90 days horizon Mfs Technology Fund is expected to under-perform the Oppenheimer Main. In addition to that, Mfs Technology is 1.85 times more volatile than Oppenheimer Main Street. It trades about -0.05 of its total potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.02 per unit of volatility. If you would invest 2,322 in Oppenheimer Main Street on November 1, 2024 and sell it today you would earn a total of 23.00 from holding Oppenheimer Main Street or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.33% |
| Values | Daily Returns |
Mfs Technology Fund vs. Oppenheimer Main Street
Performance |
| Timeline |
| Mfs Technology |
| Oppenheimer Main Street |
Mfs Technology and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Technology and Oppenheimer Main
The main advantage of trading using opposite Mfs Technology and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Technology position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main's long position.| Mfs Technology vs. Firsthand Technology Opportunities | Mfs Technology vs. Invesco Technology Fund | Mfs Technology vs. Global Technology Portfolio | Mfs Technology vs. Technology Ultrasector Profund |
| Oppenheimer Main vs. Us Global Investors | Oppenheimer Main vs. Qs Global Equity | Oppenheimer Main vs. Dreyfusstandish Global Fixed | Oppenheimer Main vs. Rbc Global Opportunities |
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.
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