Correlation Between Oppenheimer Target and Aim International
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Target and Aim International 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 Target and Aim International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Target and Aim International Mutual, you can compare the effects of market volatilities on Oppenheimer Target and Aim International 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 Target with a short position of Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Target and Aim International.
Diversification Opportunities for Oppenheimer Target and Aim International
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oppenheimer and Aim is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Target and Aim International Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim International Mutual and Oppenheimer Target 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 Target are associated (or correlated) with Aim International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim International Mutual has no effect on the direction of Oppenheimer Target i.e., Oppenheimer Target and Aim International go up and down completely randomly.
Pair Corralation between Oppenheimer Target and Aim International
Assuming the 90 days horizon Oppenheimer Target is expected to generate 1.23 times more return on investment than Aim International. However, Oppenheimer Target is 1.23 times more volatile than Aim International Mutual. It trades about 0.1 of its potential returns per unit of risk. Aim International Mutual is currently generating about 0.02 per unit of risk. If you would invest 2,626 in Oppenheimer Target on August 27, 2024 and sell it today you would earn a total of 1,816 from holding Oppenheimer Target or generate 69.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Target vs. Aim International Mutual
Performance |
| Timeline |
| Oppenheimer Target |
| Aim International Mutual |
Oppenheimer Target and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Target and Aim International
The main advantage of trading using opposite Oppenheimer Target and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Target position performs unexpectedly, Aim International 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 Aim International will offset losses from the drop in Aim International's long position.| Oppenheimer Target vs. The Gabelli Healthcare | Oppenheimer Target vs. Deutsche Health And | Oppenheimer Target vs. Fidelity Advisor Health | Oppenheimer Target vs. Hartford Healthcare Hls |
| Aim International vs. Auer Growth Fund | Aim International vs. Rational Special Situations | Aim International vs. Ab Value Fund | Aim International vs. Eic Value 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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