Correlation Between Oppenheimer Main and Oppenheimer Strategic
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Main and Oppenheimer Strategic 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 Oppenheimer Strategic 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 Oppenheimer Strategic Income, you can compare the effects of market volatilities on Oppenheimer Main and Oppenheimer Strategic 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 Oppenheimer Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Main and Oppenheimer Strategic.
Diversification Opportunities for Oppenheimer Main and Oppenheimer Strategic
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oppenheimer and Oppenheimer is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Main Street and Oppenheimer Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Strategic 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 Oppenheimer Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Strategic has no effect on the direction of Oppenheimer Main i.e., Oppenheimer Main and Oppenheimer Strategic go up and down completely randomly.
Pair Corralation between Oppenheimer Main and Oppenheimer Strategic
Assuming the 90 days horizon Oppenheimer Main Street is expected to generate 2.97 times more return on investment than Oppenheimer Strategic. However, Oppenheimer Main is 2.97 times more volatile than Oppenheimer Strategic Income. It trades about 0.1 of its potential returns per unit of risk. Oppenheimer Strategic Income is currently generating about 0.03 per unit of risk. If you would invest 1,980 in Oppenheimer Main Street on August 29, 2024 and sell it today you would earn a total of 475.00 from holding Oppenheimer Main Street or generate 23.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Main Street vs. Oppenheimer Strategic Income
Performance |
| Timeline |
| Oppenheimer Main Street |
| Oppenheimer Strategic |
Oppenheimer Main and Oppenheimer Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Main and Oppenheimer Strategic
The main advantage of trading using opposite Oppenheimer Main and Oppenheimer Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Main position performs unexpectedly, Oppenheimer Strategic 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 Oppenheimer Strategic will offset losses from the drop in Oppenheimer Strategic's long position.| Oppenheimer Main vs. Vanguard Small Cap Index | Oppenheimer Main vs. T Rowe Price | Oppenheimer Main vs. HUMANA INC | Oppenheimer Main vs. Aquagold International |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |