Correlation Between Pimco Emerging and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Pimco Emerging and Oppenheimer 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 Pimco Emerging and Oppenheimer International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Emerging Markets and Oppenheimer International Diversified, you can compare the effects of market volatilities on Pimco Emerging and Oppenheimer 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 Pimco Emerging with a short position of Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Emerging and Oppenheimer International.
Diversification Opportunities for Pimco Emerging and Oppenheimer International
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and Oppenheimer is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Emerging Markets and Oppenheimer International Dive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International and Pimco Emerging 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 Pimco Emerging Markets are associated (or correlated) with Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Pimco Emerging i.e., Pimco Emerging and Oppenheimer International go up and down completely randomly.
Pair Corralation between Pimco Emerging and Oppenheimer International
Assuming the 90 days horizon Pimco Emerging Markets is expected to generate 0.21 times more return on investment than Oppenheimer International. However, Pimco Emerging Markets is 4.77 times less risky than Oppenheimer International. It trades about 0.07 of its potential returns per unit of risk. Oppenheimer International Diversified is currently generating about -0.07 per unit of risk. If you would invest 912.00 in Pimco Emerging Markets on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Pimco Emerging Markets or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Emerging Markets vs. Oppenheimer International Dive
Performance |
| Timeline |
| Pimco Emerging Markets |
| Oppenheimer International |
Pimco Emerging and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Emerging and Oppenheimer International
The main advantage of trading using opposite Pimco Emerging and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Emerging position performs unexpectedly, Oppenheimer 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 Oppenheimer International will offset losses from the drop in Oppenheimer International's long position.| Pimco Emerging vs. Prudential High Yield | Pimco Emerging vs. Fidelity Capital Income | Pimco Emerging vs. Guggenheim High Yield | Pimco Emerging vs. Lord Abbett High |
| Oppenheimer International vs. Fidelity International Growth | Oppenheimer International vs. Fidelity Small Cap | Oppenheimer International vs. Fidelity Advisor Mid | Oppenheimer International vs. HUMANA INC |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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