Correlation Between Western Asset and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Western Asset and Oppenheimer International 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 Western Asset and Oppenheimer International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset High and Oppenheimer International Small, you can compare the effects of market volatilities on Western Asset and Oppenheimer International 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 Western Asset with a short position of Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Oppenheimer International.
Diversification Opportunities for Western Asset and Oppenheimer International
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Oppenheimer is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset High and Oppenheimer International Smal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International and Western Asset 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 Western Asset High are associated (or correlated) with Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Western Asset i.e., Western Asset and Oppenheimer International go up and down completely randomly.
Pair Corralation between Western Asset and Oppenheimer International
Assuming the 90 days horizon Western Asset High is expected to generate 0.24 times more return on investment than Oppenheimer International. However, Western Asset High is 4.17 times less risky than Oppenheimer International. It trades about 0.24 of its potential returns per unit of risk. Oppenheimer International Small is currently generating about -0.31 per unit of risk. If you would invest 699.00 in Western Asset High on August 24, 2024 and sell it today you would earn a total of 6.00 from holding Western Asset High or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Western Asset High vs. Oppenheimer International Smal
Performance |
| Timeline |
| Western Asset High |
| Oppenheimer International |
Western Asset and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Oppenheimer International
The main advantage of trading using opposite Western Asset and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Oppenheimer International 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 International will offset losses from the drop in Oppenheimer International's long position.| Western Asset vs. Pace International Emerging | Western Asset vs. Eagle Mlp Strategy | Western Asset vs. Shelton Emerging Markets | Western Asset vs. Artisan Emerging Markets |
| Oppenheimer International vs. Hennessy Nerstone Mid | Oppenheimer International vs. Boston Partners Small | Oppenheimer International vs. Mutual Of America | Oppenheimer International vs. Queens Road Small |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |