Correlation Between Nuveen Strategic and Oppenheimer Main

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Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic 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 Nuveen Strategic and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Strategic Municipal and Oppenheimer Main Strt, you can compare the effects of market volatilities on Nuveen Strategic 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 Nuveen Strategic with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Oppenheimer Main.

Diversification Opportunities for Nuveen Strategic and Oppenheimer Main

0.43
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Nuveen and Oppenheimer is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Oppenheimer Main Strt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Strt and Nuveen Strategic 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 Nuveen Strategic Municipal 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 Strt has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Oppenheimer Main go up and down completely randomly.

Pair Corralation between Nuveen Strategic and Oppenheimer Main

Assuming the 90 days horizon Nuveen Strategic is expected to generate 1.67 times less return on investment than Oppenheimer Main. But when comparing it to its historical volatility, Nuveen Strategic Municipal is 5.33 times less risky than Oppenheimer Main. It trades about 0.03 of its potential returns per unit of risk. Oppenheimer Main Strt is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,608  in Oppenheimer Main Strt on October 10, 2024 and sell it today you would earn a total of  6.00  from holding Oppenheimer Main Strt or generate 0.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Nuveen Strategic Municipal  vs.  Oppenheimer Main Strt

 Performance 
       Timeline  
Nuveen Strategic Mun 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Nuveen Strategic Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nuveen Strategic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Oppenheimer Main Strt 

Risk-Adjusted Performance

0 of 100

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

Nuveen Strategic and Oppenheimer Main Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nuveen Strategic and Oppenheimer Main

The main advantage of trading using opposite Nuveen Strategic and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic 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.
The idea behind Nuveen Strategic Municipal and Oppenheimer Main Strt 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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