Correlation Between Oppenheimer Holdings and Xp
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Holdings and Xp 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 Xp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Holdings and Xp Inc, you can compare the effects of market volatilities on Oppenheimer Holdings and Xp 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 Xp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Holdings and Xp.
Diversification Opportunities for Oppenheimer Holdings and Xp
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oppenheimer and Xp is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Xp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Inc 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 Xp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Inc has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Xp go up and down completely randomly.
Pair Corralation between Oppenheimer Holdings and Xp
Considering the 90-day investment horizon Oppenheimer Holdings is expected to generate 0.64 times more return on investment than Xp. However, Oppenheimer Holdings is 1.56 times less risky than Xp. It trades about 0.12 of its potential returns per unit of risk. Xp Inc is currently generating about -0.36 per unit of risk. If you would invest 5,983 in Oppenheimer Holdings on September 15, 2024 and sell it today you would earn a total of 291.00 from holding Oppenheimer Holdings or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Holdings vs. Xp Inc
Performance |
| Timeline |
| Oppenheimer Holdings |
| Xp Inc |
Oppenheimer Holdings and Xp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Holdings and Xp
The main advantage of trading using opposite Oppenheimer Holdings and Xp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Holdings position performs unexpectedly, Xp 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 Xp will offset losses from the drop in Xp's long position.| Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Stifel Financial | Oppenheimer Holdings vs. Evercore Partners |
| Xp vs. Scully Royalty | Xp vs. Oppenheimer Holdings | Xp vs. Houlihan Lokey | Xp vs. Mercurity Fintech Holding |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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