Correlation Between Oppenheimer International and First Trust
Can any of the company-specific risk be diversified away by investing in both Oppenheimer International and First Trust 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 First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer International Diversified and First Trust Short, you can compare the effects of market volatilities on Oppenheimer International and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer International and First Trust.
Diversification Opportunities for Oppenheimer International and First Trust
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oppenheimer and First is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer International Dive and First Trust Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Short 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 Diversified are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Short has no effect on the direction of Oppenheimer International i.e., Oppenheimer International and First Trust go up and down completely randomly.
Pair Corralation between Oppenheimer International and First Trust
Assuming the 90 days horizon Oppenheimer International is expected to generate 42.0 times less return on investment than First Trust. In addition to that, Oppenheimer International is 5.11 times more volatile than First Trust Short. It trades about 0.0 of its total potential returns per unit of risk. First Trust Short is currently generating about 0.17 per unit of volatility. If you would invest 1,537 in First Trust Short on September 3, 2024 and sell it today you would earn a total of 276.00 from holding First Trust Short or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer International Dive vs. First Trust Short
Performance |
| Timeline |
| Oppenheimer International |
| First Trust Short |
Oppenheimer International and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer International and First Trust
The main advantage of trading using opposite Oppenheimer International and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer International position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Oppenheimer International vs. Fidelity International Growth | Oppenheimer International vs. Fidelity Small Cap | Oppenheimer International vs. Fidelity Advisor Mid | Oppenheimer International vs. HUMANA INC |
| First Trust vs. Huber Capital Diversified | First Trust vs. Evaluator Conservative Rms | First Trust vs. Oppenheimer International Diversified | First Trust vs. Prudential Core Conservative |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |