Correlation Between Oppenheimer Senior and The Hartford

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Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and The Hartford 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 The Hartford 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 The Hartford Growth, you can compare the effects of market volatilities on Oppenheimer Senior and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and The Hartford.

Diversification Opportunities for Oppenheimer Senior and The Hartford

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between Oppenheimer and The is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and The Hartford go up and down completely randomly.

Pair Corralation between Oppenheimer Senior and The Hartford

Assuming the 90 days horizon Oppenheimer Senior is expected to generate 3.76 times less return on investment than The Hartford. But when comparing it to its historical volatility, Oppenheimer Senior Floating is 5.68 times less risky than The Hartford. It trades about 0.17 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  3,724  in The Hartford Growth on November 2, 2024 and sell it today you would earn a total of  3,198  from holding The Hartford Growth or generate 85.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Oppenheimer Senior Floating  vs.  The Hartford Growth

 Performance 
       Timeline  
Oppenheimer Senior 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Senior Floating are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Oppenheimer Senior is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Hartford Growth 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Growth are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, The Hartford may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Oppenheimer Senior and The Hartford Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oppenheimer Senior and The Hartford

The main advantage of trading using opposite Oppenheimer Senior and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.
The idea behind Oppenheimer Senior Floating and The Hartford Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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