Correlation Between Oshaughnessy Market and 1290 Funds

Can any of the company-specific risk be diversified away by investing in both Oshaughnessy Market and 1290 Funds 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 Oshaughnessy Market and 1290 Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oshaughnessy Market Leaders and 1290 Funds , you can compare the effects of market volatilities on Oshaughnessy Market and 1290 Funds 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 Oshaughnessy Market with a short position of 1290 Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshaughnessy Market and 1290 Funds.

Diversification Opportunities for Oshaughnessy Market and 1290 Funds

0.12

Correlation Coefficient

Oshaughnessy Market  1290 Funds

Average diversification

The 3 months correlation between Oshaughnessy and 1290 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Oshaughnessy Market Leaders and 1290 Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 Funds and Oshaughnessy Market 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 Oshaughnessy Market Leaders are associated (or correlated) with 1290 Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 Funds has no effect on the direction of Oshaughnessy Market i.e., Oshaughnessy Market and 1290 Funds go up and down completely randomly.

Pair Corralation between Oshaughnessy Market and 1290 Funds

Assuming the 90 days horizon Oshaughnessy Market Leaders is expected to under-perform the 1290 Funds. In addition to that, Oshaughnessy Market is 1.15 times more volatile than 1290 Funds . It trades about -0.09 of its total potential returns per unit of risk. 1290 Funds is currently generating about 0.12 per unit of volatility. If you would invest  1,195  in 1290 Funds on October 11, 2024 and sell it today you would earn a total of  130.00  from holding 1290 Funds or generate 10.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Oshaughnessy Market Leaders  vs.  1290 Funds

Oshaughnessy Market

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oshaughnessy Market Leaders has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

1290 Funds

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 1290 Funds are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, 1290 Funds may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Oshaughnessy Market and 1290 Funds

The main advantage of trading using opposite Oshaughnessy Market and 1290 Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshaughnessy Market position performs unexpectedly, 1290 Funds 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 1290 Funds will offset losses from the drop in 1290 Funds' long position.

The idea behind Oshaughnessy Market Leaders and 1290 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.