Correlation Between Oppenheimer Senior and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Floating Rate 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 Floating Rate 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 Floating Rate Fund, you can compare the effects of market volatilities on Oppenheimer Senior and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Floating Rate.
Diversification Opportunities for Oppenheimer Senior and Floating Rate
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Floating is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 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 Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Floating Rate go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Floating Rate
Assuming the 90 days horizon Oppenheimer Senior is expected to generate 1.01 times less return on investment than Floating Rate. But when comparing it to its historical volatility, Oppenheimer Senior Floating is 1.02 times less risky than Floating Rate. It trades about 0.19 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 814.00 in Floating Rate Fund on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Floating Rate Fund or generate 0.61% 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. Floating Rate Fund
Performance |
| Timeline |
| Oppenheimer Senior |
| Floating Rate |
Oppenheimer Senior and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Floating Rate
The main advantage of trading using opposite Oppenheimer Senior and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate'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 |
| Floating Rate vs. Lord Abbett Trust | Floating Rate vs. Lord Abbett Trust | Floating Rate vs. Lord Abbett Focused | Floating Rate 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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