Correlation Between Oppenheimer Rochester and Eaton Vance

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

By analyzing existing cross correlation between Oppenheimer Rochester Ca and Eaton Vance California, you can compare the effects of market volatilities on Oppenheimer Rochester and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Rochester and Eaton Vance.

Diversification Opportunities for Oppenheimer Rochester and Eaton Vance

0.97

Correlation Coefficient

Oppenheimer Rochester  Eaton Vance

Almost no diversification

The 3 months correlation between Oppenheimer and Eaton is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Rochester Ca and Eaton Vance California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance California 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 Ca are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance California has no effect on the direction of Oppenheimer Rochester i.e., Oppenheimer Rochester and Eaton Vance go up and down completely randomly.

Pair Corralation between Oppenheimer Rochester and Eaton Vance

Assuming the 90 days horizon Oppenheimer Rochester Ca is expected to under-perform the Eaton Vance. In addition to that, Oppenheimer Rochester is 1.31 times more volatile than Eaton Vance California. It trades about -0.23 of its total potential returns per unit of risk. Eaton Vance California is currently generating about -0.23 per unit of volatility. If you would invest  1,024  in Eaton Vance California on September 25, 2024 and sell it today you would lose (12.00) from holding Eaton Vance California or give up 1.17% of portfolio value over 90 days.

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

Oppenheimer Rochester Ca  vs.  Eaton Vance California

Oppenheimer Rochester

Risk-Adjusted Performance

0 of 100

Very Weak

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

Eaton Vance California

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance California has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Eaton Vance 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 Eaton Vance

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

The idea behind Oppenheimer Rochester Ca and Eaton Vance California 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.