Correlation Between American Funds and Oppenheimer Aggrssv

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

By analyzing existing cross correlation between American Funds Growth and Oppenheimer Aggrssv Invstr, you can compare the effects of market volatilities on American Funds and Oppenheimer Aggrssv 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 American Funds with a short position of Oppenheimer Aggrssv. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Oppenheimer Aggrssv.

Diversification Opportunities for American Funds and Oppenheimer Aggrssv

0.93

Correlation Coefficient

American Funds  Oppenheimer Aggrssv

Almost no diversification

The 3 months correlation between American and Oppenheimer is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Growth and Oppenheimer Aggrssv Invstr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Aggrssv and American Funds 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 American Funds Growth are associated (or correlated) with Oppenheimer Aggrssv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Aggrssv has no effect on the direction of American Funds i.e., American Funds and Oppenheimer Aggrssv go up and down completely randomly.

Pair Corralation between American Funds and Oppenheimer Aggrssv

Assuming the 90 days horizon American Funds Growth is expected to generate 1.16 times more return on investment than Oppenheimer Aggrssv. However, American Funds is 1.16 times more volatile than Oppenheimer Aggrssv Invstr. It trades about 0.19 of its potential returns per unit of risk. Oppenheimer Aggrssv Invstr is currently generating about 0.15 per unit of risk. If you would invest  2,563  in American Funds Growth on September 12, 2024 and sell it today you would earn a total of  213.00  from holding American Funds Growth or generate 8.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

American Funds Growth  vs.  Oppenheimer Aggrssv Invstr

American Funds Growth

Risk-Adjusted Performance

14 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in American Funds Growth are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly conflicting technical and fundamental indicators, American Funds may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Oppenheimer Aggrssv

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Aggrssv Invstr are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Oppenheimer Aggrssv is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with American Funds and Oppenheimer Aggrssv

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

The idea behind American Funds Growth and Oppenheimer Aggrssv Invstr 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.

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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.