Correlation Between Oberweis Emerging and Oppenheimer Rochester

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

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

Diversification Opportunities for Oberweis Emerging and Oppenheimer Rochester

0.6

Correlation Coefficient

Oberweis Emerging  Oppenheimer Rochester

Poor diversification

The 3 months correlation between Oberweis and Oppenheimer is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Oberweis Emerging Growth and Oppenheimer Rochester Ltdterm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Rochester and Oberweis 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 Oberweis Emerging Growth are associated (or correlated) with Oppenheimer Rochester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Rochester has no effect on the direction of Oberweis Emerging i.e., Oberweis Emerging and Oppenheimer Rochester go up and down completely randomly.

Pair Corralation between Oberweis Emerging and Oppenheimer Rochester

Assuming the 90 days horizon Oberweis Emerging Growth is expected to under-perform the Oppenheimer Rochester. In addition to that, Oberweis Emerging is 5.22 times more volatile than Oppenheimer Rochester Ltdterm. It trades about -0.02 of its total potential returns per unit of risk. Oppenheimer Rochester Ltdterm is currently generating about -0.02 per unit of volatility. If you would invest  279.00  in Oppenheimer Rochester Ltdterm on October 10, 2024 and sell it today you would lose (1.00) from holding Oppenheimer Rochester Ltdterm or give up 0.36% of portfolio value over 90 days.

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

Oberweis Emerging Growth  vs.  Oppenheimer Rochester Ltdterm

Oberweis Emerging Growth

Risk-Adjusted Performance

0 of 100

Very Weak

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

Oppenheimer Rochester

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Oberweis Emerging and Oppenheimer Rochester

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

The idea behind Oberweis Emerging Growth and Oppenheimer Rochester Ltdterm 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.