Correlation Between Oppenheimer Main and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Main and Angel Oak 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 Main and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Main Street and Angel Oak Ultrashort, you can compare the effects of market volatilities on Oppenheimer Main and Angel Oak 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 Main with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Main and Angel Oak.
Diversification Opportunities for Oppenheimer Main and Angel Oak
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Angel is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Main Street and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort and Oppenheimer Main 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 Main Street are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Ultrashort has no effect on the direction of Oppenheimer Main i.e., Oppenheimer Main and Angel Oak go up and down completely randomly.
Pair Corralation between Oppenheimer Main and Angel Oak
Assuming the 90 days horizon Oppenheimer Main Street is expected to generate 12.16 times more return on investment than Angel Oak. However, Oppenheimer Main is 12.16 times more volatile than Angel Oak Ultrashort. It trades about 0.16 of its potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.14 per unit of risk. If you would invest 2,146 in Oppenheimer Main Street on September 12, 2024 and sell it today you would earn a total of 262.00 from holding Oppenheimer Main Street or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Main Street vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Oppenheimer Main Street |
| Angel Oak Ultrashort |
Oppenheimer Main and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Main and Angel Oak
The main advantage of trading using opposite Oppenheimer Main and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Main position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Oppenheimer Main vs. Sp Midcap Index | Oppenheimer Main vs. Sp 500 Index | Oppenheimer Main vs. Nasdaq 100 Index Fund | Oppenheimer Main vs. Deutsche Sp 500 |
| Angel Oak vs. SCOR PK | Angel Oak vs. Morningstar Unconstrained Allocation | Angel Oak vs. Via Renewables | Angel Oak vs. Bondbloxx ETF Trust |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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