Correlation Between Oppenheimer Holdings and Globalink Investment
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Holdings and Globalink Investment 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 Globalink Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Holdings and Globalink Investment Rights, you can compare the effects of market volatilities on Oppenheimer Holdings and Globalink Investment 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 Globalink Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Holdings and Globalink Investment.
Diversification Opportunities for Oppenheimer Holdings and Globalink Investment
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oppenheimer and Globalink is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Globalink Investment Rights in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globalink Investment 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 Globalink Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globalink Investment has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Globalink Investment go up and down completely randomly.
Pair Corralation between Oppenheimer Holdings and Globalink Investment
Considering the 90-day investment horizon Oppenheimer Holdings is expected to generate 0.1 times more return on investment than Globalink Investment. However, Oppenheimer Holdings is 9.55 times less risky than Globalink Investment. It trades about 0.28 of its potential returns per unit of risk. Globalink Investment Rights is currently generating about 0.01 per unit of risk. If you would invest 5,626 in Oppenheimer Holdings on September 1, 2024 and sell it today you would earn a total of 545.00 from holding Oppenheimer Holdings or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
Oppenheimer Holdings vs. Globalink Investment Rights
Performance |
| Timeline |
| Oppenheimer Holdings |
| Globalink Investment |
Oppenheimer Holdings and Globalink Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Holdings and Globalink Investment
The main advantage of trading using opposite Oppenheimer Holdings and Globalink Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Holdings position performs unexpectedly, Globalink Investment 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 Globalink Investment will offset losses from the drop in Globalink Investment's long position.| Oppenheimer Holdings vs. Lazard | Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Piper Sandler Companies |
| Globalink Investment vs. Scully Royalty | Globalink Investment vs. Donnelley Financial Solutions | Globalink Investment vs. Heritage Global | Globalink Investment vs. Oppenheimer Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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