Correlation Between California High-yield and Oppenheimer Roc

Can any of the company-specific risk be diversified away by investing in both California High-yield and Oppenheimer Roc 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 High-yield and Oppenheimer Roc into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between California High Yield Municipal and Oppenheimer Roc Ca, you can compare the effects of market volatilities on California High-yield and Oppenheimer Roc 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 High-yield with a short position of Oppenheimer Roc. Check out your portfolio center. Please also check ongoing floating volatility patterns of California High-yield and Oppenheimer Roc.

Diversification Opportunities for California High-yield and Oppenheimer Roc

0.99

Correlation Coefficient

California High-yield  Oppenheimer Roc

No risk reduction

The 3 months correlation between California and Oppenheimer is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding California High Yield Municipa and Oppenheimer Roc Ca in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Roc Ca and California High-yield 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 High Yield Municipal are associated (or correlated) with Oppenheimer Roc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Roc Ca has no effect on the direction of California High-yield i.e., California High-yield and Oppenheimer Roc go up and down completely randomly.

Pair Corralation between California High-yield and Oppenheimer Roc

Assuming the 90 days horizon California High Yield Municipal is expected to generate 0.92 times more return on investment than Oppenheimer Roc. However, California High Yield Municipal is 1.09 times less risky than Oppenheimer Roc. It trades about 0.05 of its potential returns per unit of risk. Oppenheimer Roc Ca is currently generating about 0.03 per unit of risk. If you would invest  913.00  in California High Yield Municipal on October 4, 2024 and sell it today you would earn a total of  64.00  from holding California High Yield Municipal or generate 7.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

California High Yield Municipa  vs.  Oppenheimer Roc Ca

California High Yield

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days California High Yield Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, California High-yield is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oppenheimer Roc Ca

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oppenheimer Roc Ca has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Oppenheimer Roc is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with California High-yield and Oppenheimer Roc

The main advantage of trading using opposite California High-yield and Oppenheimer Roc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California High-yield position performs unexpectedly, Oppenheimer Roc 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 Roc will offset losses from the drop in Oppenheimer Roc's long position.

The idea behind California High Yield Municipal and Oppenheimer Roc Ca pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.