Correlation Between Oppenheimer Flexible and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Flexible 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 Flexible 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 Flexible Strategies and Oppenheimer Main Street, you can compare the effects of market volatilities on Oppenheimer Flexible 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 Flexible with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Flexible and Oppenheimer Main.
Diversification Opportunities for Oppenheimer Flexible and Oppenheimer Main
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Oppenheimer is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Flexible Strategie 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 Flexible 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 Flexible Strategies 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 Flexible i.e., Oppenheimer Flexible and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Oppenheimer Flexible and Oppenheimer Main
Assuming the 90 days horizon Oppenheimer Flexible is expected to generate 5.45 times less return on investment than Oppenheimer Main. But when comparing it to its historical volatility, Oppenheimer Flexible Strategies is 4.94 times less risky than Oppenheimer Main. It trades about 0.06 of its potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,714 in Oppenheimer Main Street on September 13, 2024 and sell it today you would earn a total of 677.00 from holding Oppenheimer Main Street or generate 39.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Flexible Strategie vs. Oppenheimer Main Street
Performance |
| Timeline |
| Oppenheimer Flexible |
| Oppenheimer Main Street |
Oppenheimer Flexible and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Flexible and Oppenheimer Main
The main advantage of trading using opposite Oppenheimer Flexible and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Flexible 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 Flexible vs. Oppenheimer Main Street | Oppenheimer Flexible vs. Oppenheimer Intl Small | Oppenheimer Flexible vs. Oppenheimer Main Street | Oppenheimer Flexible vs. Oppenheimer Global Strtgc |
| Oppenheimer Main vs. Short Precious Metals | Oppenheimer Main vs. Gamco Global Gold | Oppenheimer Main vs. Fidelity Advisor Gold | Oppenheimer Main vs. Global Gold Fund |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |