Correlation Between Oppenheimer Senior and Virtus Senior
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Virtus Senior 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 Virtus Senior 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 Virtus Senior Floating, you can compare the effects of market volatilities on Oppenheimer Senior and Virtus Senior 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 Virtus Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Virtus Senior.
Diversification Opportunities for Oppenheimer Senior and Virtus Senior
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and VIRTUS is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Virtus Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Senior 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 Virtus Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Senior Floating has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Virtus Senior go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Virtus Senior
Assuming the 90 days horizon Oppenheimer Senior Floating is expected to under-perform the Virtus Senior. In addition to that, Oppenheimer Senior is 2.19 times more volatile than Virtus Senior Floating. It trades about -0.08 of its total potential returns per unit of risk. Virtus Senior Floating is currently generating about 0.41 per unit of volatility. If you would invest 871.00 in Virtus Senior Floating on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Virtus Senior Floating or generate 0.34% 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. Virtus Senior Floating
Performance |
| Timeline |
| Oppenheimer Senior |
| Virtus Senior Floating |
Oppenheimer Senior and Virtus Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Virtus Senior
The main advantage of trading using opposite Oppenheimer Senior and Virtus Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Virtus Senior 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 Virtus Senior will offset losses from the drop in Virtus Senior's long position.| Oppenheimer Senior vs. Oppenheimer Senior Floating | Oppenheimer Senior vs. Floating Rate Fund | Oppenheimer Senior vs. Floating Rate Fund | Oppenheimer Senior vs. Lord Abbett Inv |
| Virtus Senior vs. Oppenheimer Senior Floating | Virtus Senior vs. Oppenheimer Senior Floating | Virtus Senior vs. Floating Rate Fund | Virtus Senior vs. Floating Rate 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |