Correlation Between California Bond and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both California Bond 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 California Bond and Oppenheimer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California Bond Fund and Oppenheimer Global Fd, you can compare the effects of market volatilities on California Bond 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 California Bond with a short position of Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Oppenheimer Global.
Diversification Opportunities for California Bond and Oppenheimer Global
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between California and Oppenheimer is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Oppenheimer Global Fd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global and California Bond 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 California Bond Fund 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 California Bond i.e., California Bond and Oppenheimer Global go up and down completely randomly.
Pair Corralation between California Bond and Oppenheimer Global
Assuming the 90 days horizon California Bond is expected to generate 4.3 times less return on investment than Oppenheimer Global. But when comparing it to its historical volatility, California Bond Fund is 8.08 times less risky than Oppenheimer Global. It trades about 0.44 of its potential returns per unit of risk. Oppenheimer Global Fd is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 10,203 in Oppenheimer Global Fd on September 13, 2024 and sell it today you would earn a total of 442.00 from holding Oppenheimer Global Fd or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
California Bond Fund vs. Oppenheimer Global Fd
Performance |
| Timeline |
| California Bond |
| Oppenheimer Global |
California Bond and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Oppenheimer Global
The main advantage of trading using opposite California Bond and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond 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.| California Bond vs. Income Fund Income | California Bond vs. Usaa Nasdaq 100 | California Bond vs. Victory Diversified Stock | California Bond vs. Intermediate Term Bond Fund |
| Oppenheimer Global vs. Oppenheimer Main Street | Oppenheimer Global vs. Oppenheimer Intl Small | Oppenheimer Global vs. Oppenheimer Main Street | Oppenheimer Global 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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