Correlation Between Oppenheimer International and Jp Morgan
Can any of the company-specific risk be diversified away by investing in both Oppenheimer International and Jp Morgan 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 International and Jp Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer International Bond and Jp Morgan Smartretirement, you can compare the effects of market volatilities on Oppenheimer International and Jp Morgan 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 International with a short position of Jp Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer International and Jp Morgan.
Diversification Opportunities for Oppenheimer International and Jp Morgan
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oppenheimer and JTSQX is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer International Bond and Jp Morgan Smartretirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jp Morgan Smartretirement and Oppenheimer International 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 International Bond are associated (or correlated) with Jp Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jp Morgan Smartretirement has no effect on the direction of Oppenheimer International i.e., Oppenheimer International and Jp Morgan go up and down completely randomly.
Pair Corralation between Oppenheimer International and Jp Morgan
Assuming the 90 days horizon Oppenheimer International is expected to generate 2.56 times less return on investment than Jp Morgan. But when comparing it to its historical volatility, Oppenheimer International Bond is 1.4 times less risky than Jp Morgan. It trades about 0.17 of its potential returns per unit of risk. Jp Morgan Smartretirement is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,308 in Jp Morgan Smartretirement on September 1, 2024 and sell it today you would earn a total of 84.00 from holding Jp Morgan Smartretirement or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer International Bond vs. Jp Morgan Smartretirement
Performance |
| Timeline |
| Oppenheimer International |
| Jp Morgan Smartretirement |
Oppenheimer International and Jp Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer International and Jp Morgan
The main advantage of trading using opposite Oppenheimer International and Jp Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer International position performs unexpectedly, Jp Morgan 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 Jp Morgan will offset losses from the drop in Jp Morgan's long position.The idea behind Oppenheimer International Bond and Jp Morgan Smartretirement 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.
| Jp Morgan vs. Pace High Yield | Jp Morgan vs. Prudential Short Duration | Jp Morgan vs. Valic Company I | Jp Morgan vs. Virtus High Yield |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |