Correlation Between Raymond James and Oppenheimer Holdings
Can any of the company-specific risk be diversified away by investing in both Raymond James and Oppenheimer Holdings 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 Raymond James and Oppenheimer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raymond James Financial and Oppenheimer Holdings, you can compare the effects of market volatilities on Raymond James and Oppenheimer Holdings 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 Raymond James with a short position of Oppenheimer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Oppenheimer Holdings.
Diversification Opportunities for Raymond James and Oppenheimer Holdings
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Raymond and Oppenheimer is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Oppenheimer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Holdings and Raymond James 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 Raymond James Financial are associated (or correlated) with Oppenheimer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Holdings has no effect on the direction of Raymond James i.e., Raymond James and Oppenheimer Holdings go up and down completely randomly.
Pair Corralation between Raymond James and Oppenheimer Holdings
Considering the 90-day investment horizon Raymond James Financial is expected to generate 0.68 times more return on investment than Oppenheimer Holdings. However, Raymond James Financial is 1.48 times less risky than Oppenheimer Holdings. It trades about -0.43 of its potential returns per unit of risk. Oppenheimer Holdings is currently generating about -0.31 per unit of risk. If you would invest 16,934 in Raymond James Financial on November 27, 2024 and sell it today you would lose (1,766) from holding Raymond James Financial or give up 10.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raymond James Financial vs. Oppenheimer Holdings
Performance |
| Timeline |
| Raymond James Financial |
| Oppenheimer Holdings |
Raymond James and Oppenheimer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and Oppenheimer Holdings
The main advantage of trading using opposite Raymond James and Oppenheimer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, Oppenheimer Holdings 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 Holdings will offset losses from the drop in Oppenheimer Holdings' long position.| Raymond James vs. Tradeweb Markets | Raymond James vs. PJT Partners | Raymond James vs. Moelis Co | Raymond James vs. LPL Financial Holdings |
| Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Stifel Financial | Oppenheimer Holdings vs. Evercore Partners |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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