Correlation Between Oppenheimer Senior and Oakhurst Short
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Oakhurst Short 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 Oakhurst Short 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 Oakhurst Short Duration, you can compare the effects of market volatilities on Oppenheimer Senior and Oakhurst Short 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 Oakhurst Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Oakhurst Short.
Diversification Opportunities for Oppenheimer Senior and Oakhurst Short
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Oakhurst is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Oakhurst Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Short Duration 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 Oakhurst Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Short Duration has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Oakhurst Short go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Oakhurst Short
Assuming the 90 days horizon Oppenheimer Senior Floating is expected to generate 1.5 times more return on investment than Oakhurst Short. However, Oppenheimer Senior is 1.5 times more volatile than Oakhurst Short Duration. It trades about 0.24 of its potential returns per unit of risk. Oakhurst Short Duration is currently generating about 0.3 per unit of risk. If you would invest 651.00 in Oppenheimer Senior Floating on October 21, 2024 and sell it today you would earn a total of 7.00 from holding Oppenheimer Senior Floating or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Senior Floating vs. Oakhurst Short Duration
Performance |
| Timeline |
| Oppenheimer Senior |
| Oakhurst Short Duration |
Oppenheimer Senior and Oakhurst Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Oakhurst Short
The main advantage of trading using opposite Oppenheimer Senior and Oakhurst Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Oakhurst Short 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 Oakhurst Short will offset losses from the drop in Oakhurst Short's long position.| Oppenheimer Senior vs. Goldman Sachs Financial | Oppenheimer Senior vs. Vanguard Financials Index | Oppenheimer Senior vs. Financials Ultrasector Profund | Oppenheimer Senior vs. 1919 Financial Services |
| Oakhurst Short vs. William Blair Small | Oakhurst Short vs. Valic Company I | Oakhurst Short vs. Great West Loomis Sayles | Oakhurst Short vs. Amg River Road |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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