Correlation Between Nasdaq 100 and Oppenheimer Intl
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Oppenheimer Intl 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 Nasdaq 100 and Oppenheimer Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Fund Class and Oppenheimer Intl Grwth, you can compare the effects of market volatilities on Nasdaq 100 and Oppenheimer Intl 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 Nasdaq 100 with a short position of Oppenheimer Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Oppenheimer Intl.
Diversification Opportunities for Nasdaq 100 and Oppenheimer Intl
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nasdaq and Oppenheimer is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Fund Class and Oppenheimer Intl Grwth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Intl Grwth and Nasdaq 100 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 Nasdaq 100 Fund Class are associated (or correlated) with Oppenheimer Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Intl Grwth has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Oppenheimer Intl go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Oppenheimer Intl
Assuming the 90 days horizon Nasdaq 100 is expected to generate 1.05 times less return on investment than Oppenheimer Intl. In addition to that, Nasdaq 100 is 1.29 times more volatile than Oppenheimer Intl Grwth. It trades about 0.08 of its total potential returns per unit of risk. Oppenheimer Intl Grwth is currently generating about 0.11 per unit of volatility. If you would invest 3,522 in Oppenheimer Intl Grwth on September 13, 2024 and sell it today you would earn a total of 55.00 from holding Oppenheimer Intl Grwth or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nasdaq 100 Fund Class vs. Oppenheimer Intl Grwth
Performance |
| Timeline |
| Nasdaq 100 Fund |
| Oppenheimer Intl Grwth |
Nasdaq 100 and Oppenheimer Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Oppenheimer Intl
The main advantage of trading using opposite Nasdaq 100 and Oppenheimer Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Oppenheimer Intl 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 Intl will offset losses from the drop in Oppenheimer Intl's long position.| Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 2x Strategy | Nasdaq 100 vs. Dow 2x Strategy |
| Oppenheimer Intl vs. Oppenheimer Main Street | Oppenheimer Intl vs. Oppenheimer Intl Small | Oppenheimer Intl vs. Oppenheimer Main Street | Oppenheimer Intl vs. Oppenheimer Global Strtgc |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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