Correlation Between Oppenheimer Rochester and Aim Taxexempt

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

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

Diversification Opportunities for Oppenheimer Rochester and Aim Taxexempt

0.92

Correlation Coefficient

Oppenheimer Rochester  Aim Taxexempt

Almost no diversification

The 3 months correlation between Oppenheimer and Aim is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Rochester Ltdterm and Aim Taxexempt Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Taxexempt Funds and Oppenheimer Rochester 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 Oppenheimer Rochester Ltdterm are associated (or correlated) with Aim Taxexempt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Taxexempt Funds has no effect on the direction of Oppenheimer Rochester i.e., Oppenheimer Rochester and Aim Taxexempt go up and down completely randomly.

Pair Corralation between Oppenheimer Rochester and Aim Taxexempt

Assuming the 90 days horizon Oppenheimer Rochester is expected to generate 20.33 times less return on investment than Aim Taxexempt. In addition to that, Oppenheimer Rochester is 1.03 times more volatile than Aim Taxexempt Funds. It trades about 0.0 of its total potential returns per unit of risk. Aim Taxexempt Funds is currently generating about 0.03 per unit of volatility. If you would invest  276.00  in Aim Taxexempt Funds on December 30, 2024 and sell it today you would earn a total of  1.00  from holding Aim Taxexempt Funds or generate 0.36% return on investment over 90 days.

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

Oppenheimer Rochester Ltdterm  vs.  Aim Taxexempt Funds

Oppenheimer Rochester

Risk-Adjusted Performance

Very Weak

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

Aim Taxexempt Funds

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aim Taxexempt Funds are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Aim Taxexempt is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oppenheimer Rochester and Aim Taxexempt

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

The idea behind Oppenheimer Rochester Ltdterm and Aim Taxexempt Funds 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.