Correlation Between Stonex and Oppenheimer Holdings
Can any of the company-specific risk be diversified away by investing in both Stonex 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 Stonex and Oppenheimer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stonex Group and Oppenheimer Holdings, you can compare the effects of market volatilities on Stonex 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 Stonex with a short position of Oppenheimer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stonex and Oppenheimer Holdings.
Diversification Opportunities for Stonex and Oppenheimer Holdings
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stonex and Oppenheimer is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Stonex Group and Oppenheimer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Holdings and Stonex 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 Stonex Group 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 Stonex i.e., Stonex and Oppenheimer Holdings go up and down completely randomly.
Pair Corralation between Stonex and Oppenheimer Holdings
Given the investment horizon of 90 days Stonex Group is expected to generate 1.17 times more return on investment than Oppenheimer Holdings. However, Stonex is 1.17 times more volatile than Oppenheimer Holdings. It trades about 0.32 of its potential returns per unit of risk. Oppenheimer Holdings is currently generating about 0.37 per unit of risk. If you would invest 9,410 in Stonex Group on October 20, 2024 and sell it today you would earn a total of 1,091 from holding Stonex Group or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stonex Group vs. Oppenheimer Holdings
Performance |
| Timeline |
| Stonex Group |
| Oppenheimer Holdings |
Stonex and Oppenheimer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stonex and Oppenheimer Holdings
The main advantage of trading using opposite Stonex and Oppenheimer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stonex 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.| Stonex vs. PJT Partners | Stonex vs. Houlihan Lokey | Stonex vs. Stifel Financial | Stonex vs. Evercore Partners |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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