Correlation Between Investec Emerging and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Investec Emerging and Oppenheimer Main 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 Investec Emerging and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Oppenheimer Main Street, you can compare the effects of market volatilities on Investec Emerging and Oppenheimer Main 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 Investec Emerging with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Oppenheimer Main.
Diversification Opportunities for Investec Emerging and Oppenheimer Main
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Investec and Oppenheimer is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street and Investec Emerging 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 Investec Emerging Markets are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Street has no effect on the direction of Investec Emerging i.e., Investec Emerging and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Investec Emerging and Oppenheimer Main
Assuming the 90 days horizon Investec Emerging is expected to generate 1.43 times less return on investment than Oppenheimer Main. But when comparing it to its historical volatility, Investec Emerging Markets is 1.3 times less risky than Oppenheimer Main. It trades about 0.05 of its potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,770 in Oppenheimer Main Street on September 14, 2024 and sell it today you would earn a total of 582.00 from holding Oppenheimer Main Street or generate 32.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Oppenheimer Main Street
Performance |
| Timeline |
| Investec Emerging Markets |
| Oppenheimer Main Street |
Investec Emerging and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Oppenheimer Main
The main advantage of trading using opposite Investec Emerging and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main's long position.| Investec Emerging vs. Rbc Emerging Markets | Investec Emerging vs. Locorr Market Trend | Investec Emerging vs. Calvert Developed Market | Investec Emerging vs. Ab All Market |
| Oppenheimer Main vs. Vy Jpmorgan Emerging | Oppenheimer Main vs. Ashmore Emerging Markets | Oppenheimer Main vs. Franklin Emerging Market | Oppenheimer Main vs. Investec Emerging Markets |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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