Correlation Between Payden Absolute and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Payden Absolute 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 Payden Absolute and Oppenheimer International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payden Absolute Return and Oppenheimer International Diversified, you can compare the effects of market volatilities on Payden Absolute 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 Payden Absolute with a short position of Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Absolute and Oppenheimer International.
Diversification Opportunities for Payden Absolute and Oppenheimer International
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Payden and Oppenheimer is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Payden Absolute Return and Oppenheimer International Dive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International and Payden Absolute 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 Payden Absolute Return 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 Payden Absolute i.e., Payden Absolute and Oppenheimer International go up and down completely randomly.
Pair Corralation between Payden Absolute and Oppenheimer International
Assuming the 90 days horizon Payden Absolute Return is expected to generate 0.13 times more return on investment than Oppenheimer International. However, Payden Absolute Return is 7.45 times less risky than Oppenheimer International. It trades about 0.19 of its potential returns per unit of risk. Oppenheimer International Diversified is currently generating about 0.0 per unit of risk. If you would invest 837.00 in Payden Absolute Return on September 2, 2024 and sell it today you would earn a total of 110.00 from holding Payden Absolute Return or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payden Absolute Return vs. Oppenheimer International Dive
Performance |
| Timeline |
| Payden Absolute Return |
| Oppenheimer International |
Payden Absolute and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Absolute and Oppenheimer International
The main advantage of trading using opposite Payden Absolute and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden Absolute 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.| Payden Absolute vs. Payden Emerging Markets | Payden Absolute vs. The Payden Regal | Payden Absolute vs. Payden E Bond | Payden Absolute vs. Payden Emerging Markets |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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