Correlation Between Oppenheimer Main and Oppenheimer Senior
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Main and Oppenheimer Senior 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 Senior 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 Senior Floating, you can compare the effects of market volatilities on Oppenheimer Main and Oppenheimer Senior 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 Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Main and Oppenheimer Senior.
Diversification Opportunities for Oppenheimer Main and Oppenheimer Senior
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Oppenheimer is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Main Street and Oppenheimer Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Senior 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 Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Senior has no effect on the direction of Oppenheimer Main i.e., Oppenheimer Main and Oppenheimer Senior go up and down completely randomly.
Pair Corralation between Oppenheimer Main and Oppenheimer Senior
Assuming the 90 days horizon Oppenheimer Main Street is expected to generate 9.68 times more return on investment than Oppenheimer Senior. However, Oppenheimer Main is 9.68 times more volatile than Oppenheimer Senior Floating. It trades about 0.26 of its potential returns per unit of risk. Oppenheimer Senior Floating is currently generating about 0.13 per unit of risk. If you would invest 2,345 in Oppenheimer Main Street on August 31, 2024 and sell it today you would earn a total of 204.00 from holding Oppenheimer Main Street or generate 8.7% 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. Oppenheimer Senior Floating
Performance |
| Timeline |
| Oppenheimer Main Street |
| Oppenheimer Senior |
Oppenheimer Main and Oppenheimer Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Main and Oppenheimer Senior
The main advantage of trading using opposite Oppenheimer Main and Oppenheimer Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Main position performs unexpectedly, Oppenheimer Senior 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 Senior will offset losses from the drop in Oppenheimer Senior's long position.| Oppenheimer Main vs. Small Cap Stock | Oppenheimer Main vs. Artisan Thematic Fund | Oppenheimer Main vs. Qs Growth Fund | Oppenheimer Main vs. Balanced Fund Investor |
| Oppenheimer Senior vs. Oppenheimer Senior Floating | Oppenheimer Senior vs. Floating Rate Fund | Oppenheimer Senior vs. Floating Rate Fund | Oppenheimer Senior vs. Floating Rate Fund |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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