Correlation Between Oppenheimer Senior and Columbia Floating
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Columbia 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 Columbia 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 Columbia Floating Rate, you can compare the effects of market volatilities on Oppenheimer Senior and Columbia 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 Columbia Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Columbia Floating.
Diversification Opportunities for Oppenheimer Senior and Columbia Floating
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Columbia is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Columbia Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia 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 Columbia Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Floating Rate has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Columbia Floating go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Columbia Floating
Assuming the 90 days horizon Oppenheimer Senior Floating is expected to generate 1.33 times more return on investment than Columbia Floating. However, Oppenheimer Senior is 1.33 times more volatile than Columbia Floating Rate. It trades about 0.17 of its potential returns per unit of risk. Columbia Floating Rate is currently generating about 0.22 per unit of risk. If you would invest 580.00 in Oppenheimer Senior Floating on September 12, 2024 and sell it today you would earn a total of 79.00 from holding Oppenheimer Senior Floating or generate 13.62% 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. Columbia Floating Rate
Performance |
| Timeline |
| Oppenheimer Senior |
| Columbia Floating Rate |
Oppenheimer Senior and Columbia Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Columbia Floating
The main advantage of trading using opposite Oppenheimer Senior and Columbia Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Columbia 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 Columbia Floating will offset losses from the drop in Columbia Floating'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 |
| Columbia Floating vs. Blrc Sgy Mnp | Columbia Floating vs. Doubleline Yield Opportunities | Columbia Floating vs. Artisan High Income | Columbia Floating vs. Ambrus Core 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |