Correlation Between NYSE Composite and Oppenheimer Strat
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Oppenheimer Strat 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 NYSE Composite and Oppenheimer Strat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Oppenheimer Strat Incm, you can compare the effects of market volatilities on NYSE Composite and Oppenheimer Strat 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 NYSE Composite with a short position of Oppenheimer Strat. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Oppenheimer Strat.
Diversification Opportunities for NYSE Composite and Oppenheimer Strat
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Oppenheimer is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Oppenheimer Strat Incm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Strat Incm and NYSE Composite 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 NYSE Composite are associated (or correlated) with Oppenheimer Strat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Strat Incm has no effect on the direction of NYSE Composite i.e., NYSE Composite and Oppenheimer Strat go up and down completely randomly.
Pair Corralation between NYSE Composite and Oppenheimer Strat
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.6 times more return on investment than Oppenheimer Strat. However, NYSE Composite is 1.6 times more volatile than Oppenheimer Strat Incm. It trades about 0.32 of its potential returns per unit of risk. Oppenheimer Strat Incm is currently generating about 0.18 per unit of risk. If you would invest 1,924,074 in NYSE Composite on November 9, 2024 and sell it today you would earn a total of 91,684 from holding NYSE Composite or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Oppenheimer Strat Incm
Performance |
| Timeline |
NYSE Composite and Oppenheimer Strat Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Oppenheimer Strat Incm
Pair trading matchups for Oppenheimer Strat
Pair Trading with NYSE Composite and Oppenheimer Strat
The main advantage of trading using opposite NYSE Composite and Oppenheimer Strat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Oppenheimer Strat 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 Strat will offset losses from the drop in Oppenheimer Strat's long position.| NYSE Composite vs. Integrated Media Technology | NYSE Composite vs. Custom Truck One | NYSE Composite vs. Funko Inc | NYSE Composite vs. Multi Ways Holdings |
| Oppenheimer Strat vs. Templeton Global Bond | Oppenheimer Strat vs. Templeton Global Bond | Oppenheimer Strat vs. Capital World Bond | Oppenheimer Strat vs. Capital World Bond |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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