Correlation Between Oppenheimer Senior and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Credit Suisse 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 Credit Suisse 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 Credit Suisse Floating, you can compare the effects of market volatilities on Oppenheimer Senior and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Credit Suisse.
Diversification Opportunities for Oppenheimer Senior and Credit Suisse
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Credit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Floating has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Credit Suisse go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Credit Suisse
Assuming the 90 days horizon Oppenheimer Senior Floating is expected to generate 1.08 times more return on investment than Credit Suisse. However, Oppenheimer Senior is 1.08 times more volatile than Credit Suisse Floating. It trades about 0.13 of its potential returns per unit of risk. Credit Suisse Floating is currently generating about 0.14 per unit of risk. If you would invest 631.00 in Oppenheimer Senior Floating on September 4, 2024 and sell it today you would earn a total of 27.00 from holding Oppenheimer Senior Floating or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Senior Floating vs. Credit Suisse Floating
Performance |
| Timeline |
| Oppenheimer Senior |
| Credit Suisse Floating |
Oppenheimer Senior and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Credit Suisse
The main advantage of trading using opposite Oppenheimer Senior and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Oppenheimer Senior vs. Oppenheimer Main Street | Oppenheimer Senior vs. Oppenheimer Intl Small | Oppenheimer Senior vs. Oppenheimer Main Street | Oppenheimer Senior vs. Oppenheimer Global Strtgc |
| Credit Suisse vs. Auer Growth Fund | Credit Suisse vs. Artisan Thematic Fund | Credit Suisse vs. Eic Value Fund | Credit Suisse vs. Omni Small Cap Value |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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