Correlation Between Oppenheimer Roc and Franklin High
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Roc and Franklin High 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 High 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 High Income, you can compare the effects of market volatilities on Oppenheimer Roc and Franklin High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Roc and Franklin High.
Diversification Opportunities for Oppenheimer Roc and Franklin High
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oppenheimer and Franklin is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Roc Ca and Franklin High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Income 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin High Income has no effect on the direction of Oppenheimer Roc i.e., Oppenheimer Roc and Franklin High go up and down completely randomly.
Pair Corralation between Oppenheimer Roc and Franklin High
Assuming the 90 days horizon Oppenheimer Roc is expected to generate 1.94 times less return on investment than Franklin High. But when comparing it to its historical volatility, Oppenheimer Roc Ca is 1.03 times less risky than Franklin High. It trades about 0.07 of its potential returns per unit of risk. Franklin High Income is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 152.00 in Franklin High Income on September 12, 2024 and sell it today you would earn a total of 24.00 from holding Franklin High Income or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Roc Ca vs. Franklin High Income
Performance |
| Timeline |
| Oppenheimer Roc Ca |
| Franklin High Income |
Oppenheimer Roc and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Roc and Franklin High
The main advantage of trading using opposite Oppenheimer Roc and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Roc position performs unexpectedly, Franklin High 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 High will offset losses from the drop in Franklin High's long position.| Oppenheimer Roc vs. Franklin High Income | Oppenheimer Roc vs. Artisan High Income | Oppenheimer Roc vs. Fa 529 Aggressive | Oppenheimer Roc vs. Ab Global Risk |
| Franklin High vs. SCOR PK | Franklin High vs. Morningstar Unconstrained Allocation | Franklin High vs. Via Renewables | Franklin High vs. Bondbloxx ETF Trust |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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