Correlation Between Thrivent Natural and Oppenheimer Senior
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Oppenheimer Senior 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 Thrivent Natural and Oppenheimer Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Natural Resources and Oppenheimer Senior Floating, you can compare the effects of market volatilities on Thrivent Natural and Oppenheimer Senior 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 Thrivent Natural with a short position of Oppenheimer Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Oppenheimer Senior.
Diversification Opportunities for Thrivent Natural and Oppenheimer Senior
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thrivent and Oppenheimer is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Oppenheimer Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Senior and Thrivent Natural 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 Thrivent Natural Resources are associated (or correlated) with Oppenheimer Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Senior has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Oppenheimer Senior go up and down completely randomly.
Pair Corralation between Thrivent Natural and Oppenheimer Senior
Assuming the 90 days horizon Thrivent Natural is expected to generate 1.38 times less return on investment than Oppenheimer Senior. In addition to that, Thrivent Natural is 1.23 times more volatile than Oppenheimer Senior Floating. It trades about 0.1 of its total potential returns per unit of risk. Oppenheimer Senior Floating is currently generating about 0.17 per unit of volatility. If you would invest 555.00 in Oppenheimer Senior Floating on November 2, 2024 and sell it today you would earn a total of 105.00 from holding Oppenheimer Senior Floating or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Oppenheimer Senior Floating
Performance |
| Timeline |
| Thrivent Natural Res |
| Oppenheimer Senior |
Thrivent Natural and Oppenheimer Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Oppenheimer Senior
The main advantage of trading using opposite Thrivent Natural and Oppenheimer Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Oppenheimer Senior 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 Senior will offset losses from the drop in Oppenheimer Senior's long position.| Thrivent Natural vs. Pnc Balanced Allocation | Thrivent Natural vs. Alliancebernstein Global Highome | Thrivent Natural vs. Tax Managed Large Cap | Thrivent Natural vs. Barings Global Floating |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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