Correlation Between IShares ESG and Oppenheimer Russell
Can any of the company-specific risk be diversified away by investing in both IShares ESG and Oppenheimer Russell 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 IShares ESG and Oppenheimer Russell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares ESG USD and Oppenheimer Russell 2000, you can compare the effects of market volatilities on IShares ESG and Oppenheimer Russell 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 IShares ESG with a short position of Oppenheimer Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares ESG and Oppenheimer Russell.
Diversification Opportunities for IShares ESG and Oppenheimer Russell
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Oppenheimer is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding iShares ESG USD and Oppenheimer Russell 2000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Russell 2000 and IShares ESG 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 iShares ESG USD are associated (or correlated) with Oppenheimer Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Russell 2000 has no effect on the direction of IShares ESG i.e., IShares ESG and Oppenheimer Russell go up and down completely randomly.
Pair Corralation between IShares ESG and Oppenheimer Russell
Given the investment horizon of 90 days IShares ESG is expected to generate 2.8 times less return on investment than Oppenheimer Russell. But when comparing it to its historical volatility, iShares ESG USD is 2.9 times less risky than Oppenheimer Russell. It trades about 0.05 of its potential returns per unit of risk. Oppenheimer Russell 2000 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,316 in Oppenheimer Russell 2000 on September 13, 2024 and sell it today you would earn a total of 982.00 from holding Oppenheimer Russell 2000 or generate 29.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
iShares ESG USD vs. Oppenheimer Russell 2000
Performance |
| Timeline |
| iShares ESG USD |
| Oppenheimer Russell 2000 |
IShares ESG and Oppenheimer Russell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares ESG and Oppenheimer Russell
The main advantage of trading using opposite IShares ESG and Oppenheimer Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ESG position performs unexpectedly, Oppenheimer Russell 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 Russell will offset losses from the drop in Oppenheimer Russell's long position.| IShares ESG vs. American Century STOXX | IShares ESG vs. Franklin Liberty Investment | IShares ESG vs. Aquagold International | IShares ESG vs. Morningstar Unconstrained Allocation |
| Oppenheimer Russell vs. Oppenheimer Russell 1000 | Oppenheimer Russell vs. Invesco SP SmallCap | Oppenheimer Russell vs. Invesco PureBeta MSCI | Oppenheimer Russell vs. Invesco SP MidCap |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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