Correlation Between Oppenheimer Global and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Global and Oppenheimer Main 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 Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Global Multi Asset and Oppenheimer Main Street, you can compare the effects of market volatilities on Oppenheimer Global and Oppenheimer Main 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 Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Global and Oppenheimer Main.
Diversification Opportunities for Oppenheimer Global and Oppenheimer Main
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oppenheimer and Oppenheimer is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Global Multi Asset and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street 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 Multi Asset are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Street has no effect on the direction of Oppenheimer Global i.e., Oppenheimer Global and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Oppenheimer Global and Oppenheimer Main
Assuming the 90 days horizon Oppenheimer Global Multi Asset is expected to under-perform the Oppenheimer Main. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oppenheimer Global Multi Asset is 1.61 times less risky than Oppenheimer Main. The mutual fund trades about -0.15 of its potential returns per unit of risk. The Oppenheimer Main Street is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,251 in Oppenheimer Main Street on August 25, 2024 and sell it today you would earn a total of 124.00 from holding Oppenheimer Main Street or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Global Multi Asset vs. Oppenheimer Main Street
Performance |
| Timeline |
| Oppenheimer Global |
| Oppenheimer Main Street |
Oppenheimer Global and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Global and Oppenheimer Main
The main advantage of trading using opposite Oppenheimer Global and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Global position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main's long position.| Oppenheimer Global vs. Oppenheimer Main Street | Oppenheimer Global vs. Oppenheimer Intl Small | Oppenheimer Global vs. Oppenheimer Main Street | Oppenheimer Global vs. Oppenheimer Global Strtgc |
| Oppenheimer Main vs. Auer Growth Fund | Oppenheimer Main vs. Blackrock Sm Cap | Oppenheimer Main vs. Materials Portfolio Fidelity | Oppenheimer Main vs. Rational Special Situations |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |