Correlation Between Oppenheimer Strategic and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Strategic and Oppenheimer Main 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 Strategic and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Strategic Income and Oppenheimer Main Street, you can compare the effects of market volatilities on Oppenheimer Strategic and Oppenheimer Main 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 Strategic with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Strategic and Oppenheimer Main.
Diversification Opportunities for Oppenheimer Strategic and Oppenheimer Main
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oppenheimer and Oppenheimer is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Strategic Income and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street and Oppenheimer Strategic 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 Strategic Income are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Street has no effect on the direction of Oppenheimer Strategic i.e., Oppenheimer Strategic and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Oppenheimer Strategic and Oppenheimer Main
Assuming the 90 days horizon Oppenheimer Strategic is expected to generate 3.17 times less return on investment than Oppenheimer Main. But when comparing it to its historical volatility, Oppenheimer Strategic Income is 2.42 times less risky than Oppenheimer Main. It trades about 0.08 of its potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,402 in Oppenheimer Main Street on August 25, 2024 and sell it today you would earn a total of 589.00 from holding Oppenheimer Main Street or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Oppenheimer Strategic Income vs. Oppenheimer Main Street
Performance |
| Timeline |
| Oppenheimer Strategic |
| Oppenheimer Main Street |
Oppenheimer Strategic and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Strategic and Oppenheimer Main
The main advantage of trading using opposite Oppenheimer Strategic and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Strategic position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main's long position.| Oppenheimer Strategic vs. Ab E Opportunities | Oppenheimer Strategic vs. Omni Small Cap Value | Oppenheimer Strategic vs. Ab Value Fund | Oppenheimer Strategic vs. Volumetric Fund Volumetric |
| Oppenheimer Main vs. Oppenheimer Cap Apprec | Oppenheimer Main vs. Oppenheimer Global Fd | Oppenheimer Main vs. Oppenheimer Main Strt | Oppenheimer Main vs. Oppenheimer Gbl Alloc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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