Correlation Between Pacific Funds and Oppenheimer Senior
Can any of the company-specific risk be diversified away by investing in both Pacific Funds and Oppenheimer Senior 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 Pacific Funds and Oppenheimer Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Funds Floating and Oppenheimer Senior Floating, you can compare the effects of market volatilities on Pacific Funds and Oppenheimer Senior 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 Pacific Funds with a short position of Oppenheimer Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Funds and Oppenheimer Senior.
Diversification Opportunities for Pacific Funds and Oppenheimer Senior
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pacific and Oppenheimer is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Funds Floating and Oppenheimer Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Senior and Pacific Funds 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 Pacific Funds Floating are associated (or correlated) with Oppenheimer Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Senior has no effect on the direction of Pacific Funds i.e., Pacific Funds and Oppenheimer Senior go up and down completely randomly.
Pair Corralation between Pacific Funds and Oppenheimer Senior
Assuming the 90 days horizon Pacific Funds Floating is expected to generate 0.73 times more return on investment than Oppenheimer Senior. However, Pacific Funds Floating is 1.38 times less risky than Oppenheimer Senior. It trades about 0.29 of its potential returns per unit of risk. Oppenheimer Senior Floating is currently generating about 0.13 per unit of risk. If you would invest 946.00 in Pacific Funds Floating on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Pacific Funds Floating or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Funds Floating vs. Oppenheimer Senior Floating
Performance |
| Timeline |
| Pacific Funds Floating |
| Oppenheimer Senior |
Pacific Funds and Oppenheimer Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Funds and Oppenheimer Senior
The main advantage of trading using opposite Pacific Funds and Oppenheimer Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Funds position performs unexpectedly, Oppenheimer Senior 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 Senior will offset losses from the drop in Oppenheimer Senior's long position.| Pacific Funds vs. Pacific Funds Strategic | Pacific Funds vs. Pacific Funds Short | Pacific Funds vs. Pacific Funds E | Pacific Funds vs. Lord Abbett Short |
| Oppenheimer Senior vs. Oppenheimer Main Street | Oppenheimer Senior vs. Oppenheimer Intl Small | Oppenheimer Senior vs. Oppenheimer Main Street | Oppenheimer Senior 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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