Correlation Between Oppenheimer Main and Oppenheimer Strat
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Main and Oppenheimer Strat 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 Main and Oppenheimer Strat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Main Street and Oppenheimer Strat Incm, you can compare the effects of market volatilities on Oppenheimer Main and Oppenheimer Strat 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 Main with a short position of Oppenheimer Strat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Main and Oppenheimer Strat.
Diversification Opportunities for Oppenheimer Main and Oppenheimer Strat
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oppenheimer and Oppenheimer is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Main Street and Oppenheimer Strat Incm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Strat Incm and Oppenheimer Main 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 Main Street are associated (or correlated) with Oppenheimer Strat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Strat Incm has no effect on the direction of Oppenheimer Main i.e., Oppenheimer Main and Oppenheimer Strat go up and down completely randomly.
Pair Corralation between Oppenheimer Main and Oppenheimer Strat
Assuming the 90 days horizon Oppenheimer Main Street is expected to generate 2.64 times more return on investment than Oppenheimer Strat. However, Oppenheimer Main is 2.64 times more volatile than Oppenheimer Strat Incm. It trades about 0.3 of its potential returns per unit of risk. Oppenheimer Strat Incm is currently generating about 0.21 per unit of risk. If you would invest 5,776 in Oppenheimer Main Street on September 1, 2024 and sell it today you would earn a total of 283.00 from holding Oppenheimer Main Street or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Main Street vs. Oppenheimer Strat Incm
Performance |
| Timeline |
| Oppenheimer Main Street |
| Oppenheimer Strat Incm |
Oppenheimer Main and Oppenheimer Strat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Main and Oppenheimer Strat
The main advantage of trading using opposite Oppenheimer Main and Oppenheimer Strat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Main position performs unexpectedly, Oppenheimer Strat 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 Strat will offset losses from the drop in Oppenheimer Strat's long position.| Oppenheimer Main vs. Artisan Small Cap | Oppenheimer Main vs. Parnassus Mid Cap | Oppenheimer Main vs. Mid Cap Value | Oppenheimer Main vs. Jpmorgan Large Cap |
| Oppenheimer Strat vs. Biotechnology Ultrasector Profund | Oppenheimer Strat vs. Science Technology Fund | Oppenheimer Strat vs. Icon Information Technology | Oppenheimer Strat vs. Mfs Technology Fund |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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