Correlation Between Oppenheimer Senior and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Invesco Municipal 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 Senior and Invesco Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Senior Floating and Invesco Municipal Income, you can compare the effects of market volatilities on Oppenheimer Senior and Invesco Municipal 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 Senior with a short position of Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Invesco Municipal.
Diversification Opportunities for Oppenheimer Senior and Invesco Municipal
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oppenheimer and Invesco is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Invesco Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Income and Oppenheimer Senior 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 Senior Floating are associated (or correlated) with Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Income has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Invesco Municipal go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Invesco Municipal
Assuming the 90 days horizon Oppenheimer Senior Floating is expected to generate 0.87 times more return on investment than Invesco Municipal. However, Oppenheimer Senior Floating is 1.14 times less risky than Invesco Municipal. It trades about 0.15 of its potential returns per unit of risk. Invesco Municipal Income is currently generating about 0.06 per unit of risk. If you would invest 547.00 in Oppenheimer Senior Floating on September 1, 2024 and sell it today you would earn a total of 112.00 from holding Oppenheimer Senior Floating or generate 20.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Senior Floating vs. Invesco Municipal Income
Performance |
| Timeline |
| Oppenheimer Senior |
| Invesco Municipal Income |
Oppenheimer Senior and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Invesco Municipal
The main advantage of trading using opposite Oppenheimer Senior and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal's long position.| Oppenheimer Senior vs. Invesco Municipal Income | Oppenheimer Senior vs. Invesco Municipal Income | Oppenheimer Senior vs. Invesco Municipal Income | Oppenheimer Senior vs. Oppenheimer Rising Dividends |
| Invesco Municipal vs. Pioneer High Yield | Invesco Municipal vs. Needham Aggressive Growth | Invesco Municipal vs. Federated Institutional High | Invesco Municipal vs. Morningstar Aggressive Growth |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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