Correlation Between Oppenheimer Holdings and Moelis
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Holdings and Moelis 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 Moelis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Holdings and Moelis Co, you can compare the effects of market volatilities on Oppenheimer Holdings and Moelis 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 Moelis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Holdings and Moelis.
Diversification Opportunities for Oppenheimer Holdings and Moelis
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Moelis is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Moelis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moelis 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 Moelis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moelis has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Moelis go up and down completely randomly.
Pair Corralation between Oppenheimer Holdings and Moelis
Considering the 90-day investment horizon Oppenheimer Holdings is expected to generate 1.68 times less return on investment than Moelis. But when comparing it to its historical volatility, Oppenheimer Holdings is 1.27 times less risky than Moelis. It trades about 0.06 of its potential returns per unit of risk. Moelis Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,740 in Moelis Co on August 29, 2024 and sell it today you would earn a total of 3,950 from holding Moelis Co or generate 105.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Holdings vs. Moelis Co
Performance |
| Timeline |
| Oppenheimer Holdings |
| Moelis |
Oppenheimer Holdings and Moelis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Holdings and Moelis
The main advantage of trading using opposite Oppenheimer Holdings and Moelis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Holdings position performs unexpectedly, Moelis 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 Moelis will offset losses from the drop in Moelis' long position.| Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Stifel Financial | Oppenheimer Holdings vs. Evercore Partners |
| Moelis vs. Visa Class A | Moelis vs. Diamond Hill Investment | Moelis vs. Distoken Acquisition | Moelis vs. AllianceBernstein Holding LP |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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