Correlation Between Oppenheimer Intl and Columbia Acorn

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Can any of the company-specific risk be diversified away by investing in both Oppenheimer Intl and Columbia Acorn 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 Intl and Columbia Acorn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Intl Small and Columbia Acorn International, you can compare the effects of market volatilities on Oppenheimer Intl and Columbia Acorn 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 Intl with a short position of Columbia Acorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Intl and Columbia Acorn.

Diversification Opportunities for Oppenheimer Intl and Columbia Acorn

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Oppenheimer and Columbia is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Intl Small and Columbia Acorn International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Acorn Inter and Oppenheimer Intl 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 Intl Small are associated (or correlated) with Columbia Acorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Acorn Inter has no effect on the direction of Oppenheimer Intl i.e., Oppenheimer Intl and Columbia Acorn go up and down completely randomly.

Pair Corralation between Oppenheimer Intl and Columbia Acorn

Assuming the 90 days horizon Oppenheimer Intl Small is expected to under-perform the Columbia Acorn. In addition to that, Oppenheimer Intl is 1.08 times more volatile than Columbia Acorn International. It trades about -0.3 of its total potential returns per unit of risk. Columbia Acorn International is currently generating about -0.28 per unit of volatility. If you would invest  2,461  in Columbia Acorn International on October 9, 2024 and sell it today you would lose (298.00) from holding Columbia Acorn International or give up 12.11% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Oppenheimer Intl Small  vs.  Columbia Acorn International

 Performance 
       Timeline  
Oppenheimer Intl Small 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oppenheimer Intl Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
Columbia Acorn Inter 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Columbia Acorn International has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Oppenheimer Intl and Columbia Acorn Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oppenheimer Intl and Columbia Acorn

The main advantage of trading using opposite Oppenheimer Intl and Columbia Acorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Intl position performs unexpectedly, Columbia Acorn 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 Columbia Acorn will offset losses from the drop in Columbia Acorn's long position.
The idea behind Oppenheimer Intl Small and Columbia Acorn International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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