Correlation Between Oppenheimer Global and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Global and Franklin Emerging 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 Global and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Global Allocation and Franklin Emerging Market, you can compare the effects of market volatilities on Oppenheimer Global and Franklin Emerging 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 Global with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Global and Franklin Emerging.
Diversification Opportunities for Oppenheimer Global and Franklin Emerging
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oppenheimer and Franklin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Global Allocation and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Oppenheimer Global 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 Global Allocation are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Oppenheimer Global i.e., Oppenheimer Global and Franklin Emerging go up and down completely randomly.
Pair Corralation between Oppenheimer Global and Franklin Emerging
Assuming the 90 days horizon Oppenheimer Global is expected to generate 1.62 times less return on investment than Franklin Emerging. In addition to that, Oppenheimer Global is 2.04 times more volatile than Franklin Emerging Market. It trades about 0.06 of its total potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.2 per unit of volatility. If you would invest 1,003 in Franklin Emerging Market on September 12, 2024 and sell it today you would earn a total of 217.00 from holding Franklin Emerging Market or generate 21.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Oppenheimer Global Allocation vs. Franklin Emerging Market
Performance |
| Timeline |
| Oppenheimer Global |
| Franklin Emerging Market |
Oppenheimer Global and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Global and Franklin Emerging
The main advantage of trading using opposite Oppenheimer Global and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Global position performs unexpectedly, Franklin Emerging 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 Franklin Emerging will offset losses from the drop in Franklin Emerging's long position.| Oppenheimer Global vs. Franklin Emerging Market | Oppenheimer Global vs. Eagle Mlp Strategy | Oppenheimer Global vs. Transamerica Emerging Markets | Oppenheimer Global vs. Nasdaq 100 2x Strategy |
| Franklin Emerging vs. Rbc Emerging Markets | Franklin Emerging vs. Origin Emerging Markets | Franklin Emerging vs. Siit Emerging Markets | Franklin Emerging vs. Locorr Market Trend |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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