Correlation Between Oppenheimer Capital and Ab Growth

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Capital and Ab Growth 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 Capital and Ab Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Capital Appreciation and Ab Growth Fund, you can compare the effects of market volatilities on Oppenheimer Capital and Ab Growth 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 Capital with a short position of Ab Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Capital and Ab Growth.

Diversification Opportunities for Oppenheimer Capital and Ab Growth

0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Oppenheimer and AGRFX is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Capital Appreciati and Ab Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Growth Fund and Oppenheimer Capital 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 Capital Appreciation are associated (or correlated) with Ab Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Growth Fund has no effect on the direction of Oppenheimer Capital i.e., Oppenheimer Capital and Ab Growth go up and down completely randomly.

Pair Corralation between Oppenheimer Capital and Ab Growth

Assuming the 90 days horizon Oppenheimer Capital Appreciation is expected to generate 0.44 times more return on investment than Ab Growth. However, Oppenheimer Capital Appreciation is 2.27 times less risky than Ab Growth. It trades about 0.07 of its potential returns per unit of risk. Ab Growth Fund is currently generating about -0.05 per unit of risk. If you would invest  8,110  in Oppenheimer Capital Appreciation on September 23, 2024 and sell it today you would earn a total of  397.00  from holding Oppenheimer Capital Appreciation or generate 4.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Oppenheimer Capital Appreciati  vs.  Ab Growth Fund

 Performance 
       Timeline  
Oppenheimer Capital 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Capital Appreciation are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Oppenheimer Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Ab Growth Fund 

Risk-Adjusted Performance

0 of 100

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

Oppenheimer Capital and Ab Growth Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oppenheimer Capital and Ab Growth

The main advantage of trading using opposite Oppenheimer Capital and Ab Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Capital position performs unexpectedly, Ab Growth 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 Ab Growth will offset losses from the drop in Ab Growth's long position.
The idea behind Oppenheimer Capital Appreciation and Ab Growth Fund 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.
Check out your portfolio center.
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Other Complementary Tools

Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments