Correlation Between Oppenheimer Roc and Franklin California
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Roc and Franklin California 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 Roc and Franklin California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Roc Ca and Franklin California Tax Free, you can compare the effects of market volatilities on Oppenheimer Roc and Franklin California 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 Roc with a short position of Franklin California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Roc and Franklin California.
Diversification Opportunities for Oppenheimer Roc and Franklin California
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Oppenheimer and Franklin is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Roc Ca and Franklin California Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin California Tax and Oppenheimer Roc 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 Roc Ca are associated (or correlated) with Franklin California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin California Tax has no effect on the direction of Oppenheimer Roc i.e., Oppenheimer Roc and Franklin California go up and down completely randomly.
Pair Corralation between Oppenheimer Roc and Franklin California
Assuming the 90 days horizon Oppenheimer Roc Ca is expected to generate 1.26 times more return on investment than Franklin California. However, Oppenheimer Roc is 1.26 times more volatile than Franklin California Tax Free. It trades about 0.16 of its potential returns per unit of risk. Franklin California Tax Free is currently generating about 0.19 per unit of risk. If you would invest 804.00 in Oppenheimer Roc Ca on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Oppenheimer Roc Ca or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Roc Ca vs. Franklin California Tax Free
Performance |
| Timeline |
| Oppenheimer Roc Ca |
| Franklin California Tax |
Oppenheimer Roc and Franklin California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Roc and Franklin California
The main advantage of trading using opposite Oppenheimer Roc and Franklin California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Roc position performs unexpectedly, Franklin California 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 Franklin California will offset losses from the drop in Franklin California's long position.| Oppenheimer Roc vs. Franklin California Tax Free | Oppenheimer Roc vs. Vanguard California Long Term | Oppenheimer Roc vs. Tax Exempt Fund Of | Oppenheimer Roc vs. Tax Exempt Fund Of |
| Franklin California vs. Federated Institutional High | Franklin California vs. Gmo High Yield | Franklin California vs. Legg Mason Partners | Franklin California vs. Prudential Short Duration |
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.
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