Correlation Between Oppenheimer Main and Oppenheimer Active
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Main and Oppenheimer Active 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 Active 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 Active Allctn, you can compare the effects of market volatilities on Oppenheimer Main and Oppenheimer Active 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 Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Main and Oppenheimer Active.
Diversification Opportunities for Oppenheimer Main and Oppenheimer Active
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppenheimer and Oppenheimer is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Main Street and Oppenheimer Active Allctn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Active Allctn 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 Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Active Allctn has no effect on the direction of Oppenheimer Main i.e., Oppenheimer Main and Oppenheimer Active go up and down completely randomly.
Pair Corralation between Oppenheimer Main and Oppenheimer Active
Assuming the 90 days horizon Oppenheimer Main Street is expected to generate 2.37 times more return on investment than Oppenheimer Active. However, Oppenheimer Main is 2.37 times more volatile than Oppenheimer Active Allctn. It trades about 0.28 of its potential returns per unit of risk. Oppenheimer Active Allctn is currently generating about 0.19 per unit of risk. If you would invest 2,356 in Oppenheimer Main Street on August 29, 2024 and sell it today you would earn a total of 221.00 from holding Oppenheimer Main Street or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Main Street vs. Oppenheimer Active Allctn
Performance |
| Timeline |
| Oppenheimer Main Street |
| Oppenheimer Active Allctn |
Oppenheimer Main and Oppenheimer Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Main and Oppenheimer Active
The main advantage of trading using opposite Oppenheimer Main and Oppenheimer Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Main position performs unexpectedly, Oppenheimer Active 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 Active will offset losses from the drop in Oppenheimer Active's long position.| Oppenheimer Main vs. Oppenheimer Intl Small | Oppenheimer Main vs. Oppenheimer Global Strtgc | Oppenheimer Main vs. Oppenheimer Strat Incm | Oppenheimer Main vs. Oppenheimer Strategic Income |
| Oppenheimer Active vs. Oppenheimer Main Street | Oppenheimer Active vs. Oppenheimer Intl Small | Oppenheimer Active vs. Oppenheimer Main Street | Oppenheimer Active vs. Oppenheimer Global Strtgc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |