Correlation Between Oppenheimer Rochester and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Rochester and Elfun Government 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 Rochester and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Rochester and Elfun Government Money, you can compare the effects of market volatilities on Oppenheimer Rochester and Elfun Government 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 Rochester with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Rochester and Elfun Government.
Diversification Opportunities for Oppenheimer Rochester and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oppenheimer and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Rochester and Elfun Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Government Money and Oppenheimer Rochester 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 Rochester are associated (or correlated) with Elfun Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Government Money has no effect on the direction of Oppenheimer Rochester i.e., Oppenheimer Rochester and Elfun Government go up and down completely randomly.
Pair Corralation between Oppenheimer Rochester and Elfun Government
Assuming the 90 days horizon Oppenheimer Rochester is expected to generate 120.59 times less return on investment than Elfun Government. But when comparing it to its historical volatility, Oppenheimer Rochester is 71.4 times less risky than Elfun Government. It trades about 0.03 of its potential returns per unit of risk. Elfun Government Money is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 374.00 in Elfun Government Money on October 23, 2024 and sell it today you would lose (274.00) from holding Elfun Government Money or give up 73.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.82% |
| Values | Daily Returns |
Oppenheimer Rochester vs. Elfun Government Money
Performance |
| Timeline |
| Oppenheimer Rochester |
| Elfun Government Money |
Oppenheimer Rochester and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Rochester and Elfun Government
The main advantage of trading using opposite Oppenheimer Rochester and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Rochester position performs unexpectedly, Elfun Government 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 Elfun Government will offset losses from the drop in Elfun Government's long position.| Oppenheimer Rochester vs. Elfun Government Money | Oppenheimer Rochester vs. Schwab Government Money | Oppenheimer Rochester vs. Ridgeworth Seix Government | Oppenheimer Rochester vs. Voya Government Money |
| Elfun Government vs. Sp Smallcap 600 | Elfun Government vs. Lebenthal Lisanti Small | Elfun Government vs. T Rowe Price | Elfun Government vs. Qs Growth 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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