Correlation Between Oppenheimer Aggrssv and Aim International
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Aggrssv and Aim International 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 Aggrssv and Aim International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Aggrssv Invstr and Aim International Mutual, you can compare the effects of market volatilities on Oppenheimer Aggrssv and Aim International 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 Aggrssv with a short position of Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Aggrssv and Aim International.
Diversification Opportunities for Oppenheimer Aggrssv and Aim International
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppenheimer and Aim is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Aggrssv Invstr and Aim International Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim International Mutual and Oppenheimer Aggrssv 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 Aggrssv Invstr are associated (or correlated) with Aim International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim International Mutual has no effect on the direction of Oppenheimer Aggrssv i.e., Oppenheimer Aggrssv and Aim International go up and down completely randomly.
Pair Corralation between Oppenheimer Aggrssv and Aim International
Assuming the 90 days horizon Oppenheimer Aggrssv is expected to generate 1.78 times less return on investment than Aim International. But when comparing it to its historical volatility, Oppenheimer Aggrssv Invstr is 1.29 times less risky than Aim International. It trades about 0.25 of its potential returns per unit of risk. Aim International Mutual is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 3,671 in Aim International Mutual on November 9, 2024 and sell it today you would earn a total of 235.00 from holding Aim International Mutual or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Oppenheimer Aggrssv Invstr vs. Aim International Mutual
Performance |
| Timeline |
| Oppenheimer Aggrssv |
| Aim International Mutual |
Oppenheimer Aggrssv and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Aggrssv and Aim International
The main advantage of trading using opposite Oppenheimer Aggrssv and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Aggrssv position performs unexpectedly, Aim International 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 Aim International will offset losses from the drop in Aim International's long position.The idea behind Oppenheimer Aggrssv Invstr and Aim International Mutual pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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