Correlation Between Oppenheimer Senior and Dreyfus Floating
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Dreyfus Floating 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 Dreyfus Floating 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 Dreyfus Floating Rate, you can compare the effects of market volatilities on Oppenheimer Senior and Dreyfus Floating 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 Dreyfus Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Dreyfus Floating.
Diversification Opportunities for Oppenheimer Senior and Dreyfus Floating
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppenheimer and Dreyfus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Dreyfus Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Floating Rate 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 Dreyfus Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Floating Rate has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Dreyfus Floating go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Dreyfus Floating
Assuming the 90 days horizon Oppenheimer Senior Floating is expected to under-perform the Dreyfus Floating. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oppenheimer Senior Floating is 1.92 times less risky than Dreyfus Floating. The mutual fund trades about -0.08 of its potential returns per unit of risk. The Dreyfus Floating Rate is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,108 in Dreyfus Floating Rate on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Dreyfus Floating Rate or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Oppenheimer Senior Floating vs. Dreyfus Floating Rate
Performance |
| Timeline |
| Oppenheimer Senior |
| Dreyfus Floating Rate |
Oppenheimer Senior and Dreyfus Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Dreyfus Floating
The main advantage of trading using opposite Oppenheimer Senior and Dreyfus Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Dreyfus Floating 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 Dreyfus Floating will offset losses from the drop in Dreyfus Floating'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 |
| Dreyfus Floating vs. Dreyfus High Yield | Dreyfus Floating vs. Dreyfusthe Boston Pany | Dreyfus Floating vs. Dreyfus International Bond | Dreyfus Floating vs. Dreyfus International Bond |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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