Correlation Between Oppenheimer Holdings and Tri Continental
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Holdings and Tri Continental 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 Tri Continental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Holdings and Tri Continental PFD, you can compare the effects of market volatilities on Oppenheimer Holdings and Tri Continental 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 Tri Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Holdings and Tri Continental.
Diversification Opportunities for Oppenheimer Holdings and Tri Continental
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oppenheimer and Tri is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Tri Continental PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tri Continental PFD 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 Tri Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tri Continental PFD has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Tri Continental go up and down completely randomly.
Pair Corralation between Oppenheimer Holdings and Tri Continental
Considering the 90-day investment horizon Oppenheimer Holdings is expected to generate 4.11 times more return on investment than Tri Continental. However, Oppenheimer Holdings is 4.11 times more volatile than Tri Continental PFD. It trades about 0.15 of its potential returns per unit of risk. Tri Continental PFD is currently generating about -0.14 per unit of risk. If you would invest 6,371 in Oppenheimer Holdings on November 9, 2024 and sell it today you would earn a total of 420.00 from holding Oppenheimer Holdings or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Holdings vs. Tri Continental PFD
Performance |
| Timeline |
| Oppenheimer Holdings |
| Tri Continental PFD |
Oppenheimer Holdings and Tri Continental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Holdings and Tri Continental
The main advantage of trading using opposite Oppenheimer Holdings and Tri Continental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Holdings position performs unexpectedly, Tri Continental 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 Tri Continental will offset losses from the drop in Tri Continental's long position.| Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Stifel Financial | Oppenheimer Holdings vs. Evercore Partners |
| Tri Continental vs. The Connecticut Light | Tri Continental vs. The Connecticut Light | Tri Continental vs. The Connecticut Light | Tri Continental vs. The Connecticut Light |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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