Correlation Between Nasdaq 100 and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Oppenheimer Global 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 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Oppenheimer Global Allocation, you can compare the effects of market volatilities on Nasdaq 100 and Oppenheimer Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Oppenheimer Global.
Diversification Opportunities for Nasdaq 100 and Oppenheimer Global
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nasdaq and Oppenheimer is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Oppenheimer Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global 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 2x Strategy are associated (or correlated) with Oppenheimer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Global has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Oppenheimer Global
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 4.73 times more return on investment than Oppenheimer Global. However, Nasdaq 100 is 4.73 times more volatile than Oppenheimer Global Allocation. It trades about 0.16 of its potential returns per unit of risk. Oppenheimer Global Allocation is currently generating about 0.21 per unit of risk. If you would invest 42,463 in Nasdaq 100 2x Strategy on September 13, 2024 and sell it today you would earn a total of 2,549 from holding Nasdaq 100 2x Strategy or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Oppenheimer Global Allocation
Performance |
| Timeline |
| Nasdaq 100 2x |
| Oppenheimer Global |
Nasdaq 100 and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Oppenheimer Global
The main advantage of trading using opposite Nasdaq 100 and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Oppenheimer Global 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 Global will offset losses from the drop in Oppenheimer Global's long position.| Nasdaq 100 vs. Lgm Risk Managed | Nasdaq 100 vs. Franklin High Income | Nasdaq 100 vs. Alliancebernstein Global High | Nasdaq 100 vs. Artisan High Income |
| Oppenheimer Global vs. Oppenheimer Cap Apprec | Oppenheimer Global vs. Oppenheimer Main Strt | Oppenheimer Global vs. Oppenheimer Strat Incm | Oppenheimer Global vs. Aquagold International |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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