Correlation Between Oppenheimer Rochester and Aig Government
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Rochester and Aig 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 Aig 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 Aig Government Money, you can compare the effects of market volatilities on Oppenheimer Rochester and Aig 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 Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Rochester and Aig Government.
Diversification Opportunities for Oppenheimer Rochester and Aig Government
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Aig is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Rochester and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig 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 Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Oppenheimer Rochester i.e., Oppenheimer Rochester and Aig Government go up and down completely randomly.
Pair Corralation between Oppenheimer Rochester and Aig Government
Assuming the 90 days horizon Oppenheimer Rochester is expected to generate 1.85 times more return on investment than Aig Government. However, Oppenheimer Rochester is 1.85 times more volatile than Aig Government Money. It trades about 0.11 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.09 per unit of risk. If you would invest 1,396 in Oppenheimer Rochester on September 14, 2024 and sell it today you would earn a total of 146.00 from holding Oppenheimer Rochester or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Rochester vs. Aig Government Money
Performance |
| Timeline |
| Oppenheimer Rochester |
| Aig Government Money |
Oppenheimer Rochester and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Rochester and Aig Government
The main advantage of trading using opposite Oppenheimer Rochester and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Rochester position performs unexpectedly, Aig 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 Aig Government will offset losses from the drop in Aig Government's long position.| Oppenheimer Rochester vs. Aig Government Money | Oppenheimer Rochester vs. Ab Government Exchange | Oppenheimer Rochester vs. Putnam Money Market | Oppenheimer Rochester vs. Schwab Treasury Money |
| Aig Government vs. Simt Multi Asset Accumulation | Aig Government vs. Saat Market Growth | Aig Government vs. Simt Real Return | Aig Government vs. Simt Small Cap |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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