Correlation Between Needham Aggressive and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Oppenheimer Global 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 Needham Aggressive and Oppenheimer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Oppenheimer Global Multi Asset, you can compare the effects of market volatilities on Needham Aggressive and Oppenheimer Global 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 Needham Aggressive with a short position of Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Oppenheimer Global.
Diversification Opportunities for Needham Aggressive and Oppenheimer Global
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Needham and Oppenheimer is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Oppenheimer Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Oppenheimer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Global has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Needham Aggressive and Oppenheimer Global
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 2.11 times more return on investment than Oppenheimer Global. However, Needham Aggressive is 2.11 times more volatile than Oppenheimer Global Multi Asset. It trades about 0.31 of its potential returns per unit of risk. Oppenheimer Global Multi Asset is currently generating about -0.09 per unit of risk. If you would invest 4,624 in Needham Aggressive Growth on September 3, 2024 and sell it today you would earn a total of 470.00 from holding Needham Aggressive Growth or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Oppenheimer Global Multi Asset
Performance |
| Timeline |
| Needham Aggressive Growth |
| Oppenheimer Global |
Needham Aggressive and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Oppenheimer Global
The main advantage of trading using opposite Needham Aggressive and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Oppenheimer Global 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 Global will offset losses from the drop in Oppenheimer Global's long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Oppenheimer Global vs. Aqr Diversified Arbitrage | Oppenheimer Global vs. Massmutual Premier Diversified | Oppenheimer Global vs. Lord Abbett Diversified | Oppenheimer Global vs. Western Asset Diversified |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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