Correlation Between Oppenheimer Senior and Barrow Hanley
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Barrow Hanley 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 Barrow Hanley 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 Barrow Hanley Floating, you can compare the effects of market volatilities on Oppenheimer Senior and Barrow Hanley 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 Barrow Hanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Barrow Hanley.
Diversification Opportunities for Oppenheimer Senior and Barrow Hanley
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Barrow is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Barrow Hanley Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrow Hanley 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 Barrow Hanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrow Hanley Floating has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Barrow Hanley go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Barrow Hanley
Assuming the 90 days horizon Oppenheimer Senior Floating is expected to generate 0.12 times more return on investment than Barrow Hanley. However, Oppenheimer Senior Floating is 8.24 times less risky than Barrow Hanley. It trades about -0.12 of its potential returns per unit of risk. Barrow Hanley Floating is currently generating about -0.14 per unit of risk. If you would invest 660.00 in Oppenheimer Senior Floating on September 12, 2024 and sell it today you would lose (1.00) from holding Oppenheimer Senior Floating or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oppenheimer Senior Floating vs. Barrow Hanley Floating
Performance |
| Timeline |
| Oppenheimer Senior |
| Barrow Hanley Floating |
Oppenheimer Senior and Barrow Hanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Barrow Hanley
The main advantage of trading using opposite Oppenheimer Senior and Barrow Hanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Barrow Hanley 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 Barrow Hanley will offset losses from the drop in Barrow Hanley's long position.| Oppenheimer Senior vs. Barings Emerging Markets | Oppenheimer Senior vs. Vy Jpmorgan Emerging | Oppenheimer Senior vs. Ashmore Emerging Markets | Oppenheimer Senior vs. Nasdaq 100 2x Strategy |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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