Correlation Between Oppenheimer Corporate and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Corporate and Oppenheimer Main 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 Corporate and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Corporate Bond and Oppenheimer Main Strt, you can compare the effects of market volatilities on Oppenheimer Corporate and Oppenheimer Main 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 Corporate with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Corporate and Oppenheimer Main.
Diversification Opportunities for Oppenheimer Corporate and Oppenheimer Main
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Oppenheimer is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Corporate Bond and Oppenheimer Main Strt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Strt and Oppenheimer Corporate 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 Corporate Bond are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Strt has no effect on the direction of Oppenheimer Corporate i.e., Oppenheimer Corporate and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Oppenheimer Corporate and Oppenheimer Main
Assuming the 90 days horizon Oppenheimer Corporate Bond is expected to generate 0.24 times more return on investment than Oppenheimer Main. However, Oppenheimer Corporate Bond is 4.25 times less risky than Oppenheimer Main. It trades about -0.19 of its potential returns per unit of risk. Oppenheimer Main Strt is currently generating about -0.26 per unit of risk. If you would invest 915.00 in Oppenheimer Corporate Bond on December 1, 2024 and sell it today you would lose (7.00) from holding Oppenheimer Corporate Bond or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Oppenheimer Corporate Bond vs. Oppenheimer Main Strt
Performance |
| Timeline |
| Oppenheimer Corporate |
| Oppenheimer Main Strt |
Oppenheimer Corporate and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Corporate and Oppenheimer Main
The main advantage of trading using opposite Oppenheimer Corporate and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Corporate position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main's long position.| Oppenheimer Corporate vs. Oppenheimer Main Street | Oppenheimer Corporate vs. Oppenheimer Intl Small | Oppenheimer Corporate vs. Oppenheimer Main Street | Oppenheimer Corporate vs. Oppenheimer Global Strtgc |
| Oppenheimer Main vs. Rationalpier 88 Convertible | Oppenheimer Main vs. Advent Claymore Convertible | Oppenheimer Main vs. Harbor Vertible Securities | Oppenheimer Main vs. Columbia Convertible Securities |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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