Correlation Between Oppenheimer Capital and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Capital 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 Capital 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 Capital Appreciation and Oppenheimer Main Street, you can compare the effects of market volatilities on Oppenheimer Capital 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 Capital with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Capital and Oppenheimer Main.
Diversification Opportunities for Oppenheimer Capital and Oppenheimer Main
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oppenheimer and Oppenheimer is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Capital Appreciati 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 Capital 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 Capital Appreciation 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 Capital i.e., Oppenheimer Capital and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Oppenheimer Capital and Oppenheimer Main
Assuming the 90 days horizon Oppenheimer Capital Appreciation is expected to generate 0.95 times more return on investment than Oppenheimer Main. However, Oppenheimer Capital Appreciation is 1.05 times less risky than Oppenheimer Main. It trades about 0.12 of its potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.07 per unit of risk. If you would invest 5,485 in Oppenheimer Capital Appreciation on August 28, 2024 and sell it today you would earn a total of 4,565 from holding Oppenheimer Capital Appreciation or generate 83.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Capital Appreciati vs. Oppenheimer Main Street
Performance |
| Timeline |
| Oppenheimer Capital |
| Oppenheimer Main Street |
Oppenheimer Capital and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Capital and Oppenheimer Main
The main advantage of trading using opposite Oppenheimer Capital and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Capital 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 Capital vs. Oppenheimer Main Street | Oppenheimer Capital vs. Oppenheimer Intl Small | Oppenheimer Capital vs. Oppenheimer Main Street | Oppenheimer Capital vs. Oppenheimer Global Strtgc |
| Oppenheimer Main vs. Oppenheimer Main Street | Oppenheimer Main vs. Oppenheimer Intl Small | Oppenheimer Main vs. Oppenheimer Global Strtgc | Oppenheimer Main vs. Oppenheimer Strat Incm |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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