Correlation Between Oppenheimer International and Franklin Balance
Can any of the company-specific risk be diversified away by investing in both Oppenheimer International and Franklin Balance 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 Franklin Balance 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 Franklin Balance Sheet, you can compare the effects of market volatilities on Oppenheimer International and Franklin Balance 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 Franklin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer International and Franklin Balance.
Diversification Opportunities for Oppenheimer International and Franklin Balance
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oppenheimer and Franklin is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer International Dive and Franklin Balance Sheet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Balance Sheet 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 Franklin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Balance Sheet has no effect on the direction of Oppenheimer International i.e., Oppenheimer International and Franklin Balance go up and down completely randomly.
Pair Corralation between Oppenheimer International and Franklin Balance
Assuming the 90 days horizon Oppenheimer International Diversified is expected to under-perform the Franklin Balance. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oppenheimer International Diversified is 1.28 times less risky than Franklin Balance. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Franklin Balance Sheet is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 3,761 in Franklin Balance Sheet on September 3, 2024 and sell it today you would earn a total of 258.00 from holding Franklin Balance Sheet or generate 6.86% 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. Franklin Balance Sheet
Performance |
| Timeline |
| Oppenheimer International |
| Franklin Balance Sheet |
Oppenheimer International and Franklin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer International and Franklin Balance
The main advantage of trading using opposite Oppenheimer International and Franklin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer International position performs unexpectedly, Franklin Balance 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 Balance will offset losses from the drop in Franklin Balance'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 |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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