Correlation Between Oppenheimer Senior and Jpmorgan Floating
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Jpmorgan 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 Jpmorgan 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 Jpmorgan Floating Rate, you can compare the effects of market volatilities on Oppenheimer Senior and Jpmorgan 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 Jpmorgan Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Jpmorgan Floating.
Diversification Opportunities for Oppenheimer Senior and Jpmorgan Floating
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppenheimer and Jpmorgan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Jpmorgan Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan 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 Jpmorgan Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Floating Rate has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Jpmorgan Floating go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Jpmorgan Floating
Assuming the 90 days horizon Oppenheimer Senior Floating is expected to generate 2.13 times more return on investment than Jpmorgan Floating. However, Oppenheimer Senior is 2.13 times more volatile than Jpmorgan Floating Rate. It trades about 0.17 of its potential returns per unit of risk. Jpmorgan Floating Rate is currently generating about 0.33 per unit of risk. If you would invest 574.00 in Oppenheimer Senior Floating on September 4, 2024 and sell it today you would earn a total of 84.00 from holding Oppenheimer Senior Floating or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Senior Floating vs. Jpmorgan Floating Rate
Performance |
| Timeline |
| Oppenheimer Senior |
| Jpmorgan Floating Rate |
Oppenheimer Senior and Jpmorgan Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Jpmorgan Floating
The main advantage of trading using opposite Oppenheimer Senior and Jpmorgan Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Jpmorgan 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 Jpmorgan Floating will offset losses from the drop in Jpmorgan 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 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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