Correlation Between Oppenheimer Senior and Shenkman Floating
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior and Shenkman 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 Shenkman 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 Shenkman Floating Rate, you can compare the effects of market volatilities on Oppenheimer Senior and Shenkman 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 Shenkman Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Shenkman Floating.
Diversification Opportunities for Oppenheimer Senior and Shenkman Floating
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppenheimer and Shenkman is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Shenkman Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenkman 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 Shenkman Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenkman Floating Rate has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Shenkman Floating go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Shenkman Floating
Assuming the 90 days horizon Oppenheimer Senior Floating is expected to generate 2.58 times more return on investment than Shenkman Floating. However, Oppenheimer Senior is 2.58 times more volatile than Shenkman Floating Rate. It trades about 0.15 of its potential returns per unit of risk. Shenkman Floating Rate is currently generating about 0.36 per unit of risk. If you would invest 543.00 in Oppenheimer Senior Floating on September 3, 2024 and sell it today you would earn a total of 115.00 from holding Oppenheimer Senior Floating or generate 21.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Senior Floating vs. Shenkman Floating Rate
Performance |
| Timeline |
| Oppenheimer Senior |
| Shenkman Floating Rate |
Oppenheimer Senior and Shenkman Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Shenkman Floating
The main advantage of trading using opposite Oppenheimer Senior and Shenkman Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior position performs unexpectedly, Shenkman 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 Shenkman Floating will offset losses from the drop in Shenkman Floating's long position.| Oppenheimer Senior vs. The Fixed Income | Oppenheimer Senior vs. Ambrus Core Bond | Oppenheimer Senior vs. Ab Bond Inflation | Oppenheimer Senior vs. Maryland Tax Free Bond |
| Shenkman Floating vs. Rbb Fund | Shenkman Floating vs. Kinetics Small Cap | Shenkman Floating vs. Qs Small Capitalization | Shenkman Floating vs. Small Midcap Dividend Income |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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