Correlation Between Oppenheimer Holdings and Futu Holdings
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Holdings and Futu Holdings 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 Holdings and Futu Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Holdings and Futu Holdings, you can compare the effects of market volatilities on Oppenheimer Holdings and Futu Holdings 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 Holdings with a short position of Futu Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Holdings and Futu Holdings.
Diversification Opportunities for Oppenheimer Holdings and Futu Holdings
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oppenheimer and Futu is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Futu Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futu Holdings and Oppenheimer Holdings 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 Holdings are associated (or correlated) with Futu Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futu Holdings has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Futu Holdings go up and down completely randomly.
Pair Corralation between Oppenheimer Holdings and Futu Holdings
Considering the 90-day investment horizon Oppenheimer Holdings is expected to under-perform the Futu Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Oppenheimer Holdings is 2.53 times less risky than Futu Holdings. The stock trades about -0.31 of its potential returns per unit of risk. The Futu Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 9,387 in Futu Holdings on November 27, 2024 and sell it today you would earn a total of 1,641 from holding Futu Holdings or generate 17.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Holdings vs. Futu Holdings
Performance |
| Timeline |
| Oppenheimer Holdings |
| Futu Holdings |
Oppenheimer Holdings and Futu Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Holdings and Futu Holdings
The main advantage of trading using opposite Oppenheimer Holdings and Futu Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Holdings position performs unexpectedly, Futu Holdings 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 Futu Holdings will offset losses from the drop in Futu Holdings' long position.| Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Stifel Financial | Oppenheimer Holdings vs. Evercore Partners |
| Futu Holdings vs. Bit Digital | Futu Holdings vs. Xp Inc | Futu Holdings vs. Magic Empire Global | Futu Holdings vs. Applied Digital |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stocks Directory Find actively traded stocks across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |