Correlation Between Oppenheimer Discovery and Stone Ridge
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Discovery and Stone Ridge 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 Discovery and Stone Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Discovery Mid and Stone Ridge Diversified, you can compare the effects of market volatilities on Oppenheimer Discovery and Stone Ridge 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 Discovery with a short position of Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Discovery and Stone Ridge.
Diversification Opportunities for Oppenheimer Discovery and Stone Ridge
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oppenheimer and Stone is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Discovery Mid and Stone Ridge Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge Diversified and Oppenheimer Discovery 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 Discovery Mid are associated (or correlated) with Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge Diversified has no effect on the direction of Oppenheimer Discovery i.e., Oppenheimer Discovery and Stone Ridge go up and down completely randomly.
Pair Corralation between Oppenheimer Discovery and Stone Ridge
Assuming the 90 days horizon Oppenheimer Discovery Mid is expected to generate 8.28 times more return on investment than Stone Ridge. However, Oppenheimer Discovery is 8.28 times more volatile than Stone Ridge Diversified. It trades about 0.09 of its potential returns per unit of risk. Stone Ridge Diversified is currently generating about -0.08 per unit of risk. If you would invest 2,865 in Oppenheimer Discovery Mid on November 4, 2024 and sell it today you would earn a total of 65.00 from holding Oppenheimer Discovery Mid or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Discovery Mid vs. Stone Ridge Diversified
Performance |
| Timeline |
| Oppenheimer Discovery Mid |
| Stone Ridge Diversified |
Oppenheimer Discovery and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Discovery and Stone Ridge
The main advantage of trading using opposite Oppenheimer Discovery and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Discovery position performs unexpectedly, Stone Ridge 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 Stone Ridge will offset losses from the drop in Stone Ridge's long position.| Oppenheimer Discovery vs. Deutsche Gold Precious | Oppenheimer Discovery vs. James Balanced Golden | Oppenheimer Discovery vs. Fidelity Advisor Gold | Oppenheimer Discovery vs. Gold Portfolio Fidelity |
| Stone Ridge vs. Ab Global Bond | Stone Ridge vs. Pnc Balanced Allocation | Stone Ridge vs. Scharf Global Opportunity | Stone Ridge vs. Barings Global Floating |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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