Correlation Between Oppenheimer Holdings and Heritage Global
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Holdings and Heritage Global 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 Heritage Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Holdings and Heritage Global, you can compare the effects of market volatilities on Oppenheimer Holdings and Heritage Global 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 Heritage Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Holdings and Heritage Global.
Diversification Opportunities for Oppenheimer Holdings and Heritage Global
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oppenheimer and Heritage is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Heritage Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heritage Global 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 Heritage Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heritage Global has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Heritage Global go up and down completely randomly.
Pair Corralation between Oppenheimer Holdings and Heritage Global
Considering the 90-day investment horizon Oppenheimer Holdings is expected to generate 1.62 times less return on investment than Heritage Global. But when comparing it to its historical volatility, Oppenheimer Holdings is 1.01 times less risky than Heritage Global. It trades about 0.35 of its potential returns per unit of risk. Heritage Global is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Heritage Global on October 25, 2024 and sell it today you would earn a total of 38.00 from holding Heritage Global or generate 22.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Holdings vs. Heritage Global
Performance |
| Timeline |
| Oppenheimer Holdings |
| Heritage Global |
Oppenheimer Holdings and Heritage Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Holdings and Heritage Global
The main advantage of trading using opposite Oppenheimer Holdings and Heritage Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Holdings position performs unexpectedly, Heritage Global 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 Heritage Global will offset losses from the drop in Heritage Global's long position.| Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Stifel Financial | Oppenheimer Holdings vs. Evercore Partners |
| Heritage Global vs. Scully Royalty | Heritage Global vs. Mercurity Fintech Holding | Heritage Global vs. Donnelley Financial Solutions | Heritage Global 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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