Correlation Between Oppenheimer Capital and Ab Large

Can any of the company-specific risk be diversified away by investing in both Oppenheimer Capital and Ab Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on Oppenheimer Capital and Ab Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Capital and Ab Large.

Diversification Opportunities for Oppenheimer Capital and Ab Large

0.57

Correlation Coefficient

Oppenheimer Capital  Ab Large

Very weak diversification

The 3 months correlation between Oppenheimer and APGAX is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Capital Appreciati and Ab Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Large Cap has no effect on the direction of Oppenheimer Capital i.e., Oppenheimer Capital and Ab Large go up and down completely randomly.

Pair Corralation between Oppenheimer Capital and Ab Large

Assuming the 90 days horizon Oppenheimer Capital Appreciation is expected to generate 1.06 times more return on investment than Ab Large. However, Oppenheimer Capital is 1.06 times more volatile than Ab Large Cap. It trades about 0.07 of its potential returns per unit of risk. Ab Large Cap is currently generating about 0.04 per unit of risk. If you would invest  7,003  in Oppenheimer Capital Appreciation on October 2, 2024 and sell it today you would earn a total of  1,462  from holding Oppenheimer Capital Appreciation or generate 20.88% return on investment over 90 days.

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

Oppenheimer Capital Appreciati  vs.  Ab Large Cap

Oppenheimer Capital

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Capital Appreciation are ranked lower than 6 (%) 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 Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ab Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ab Large 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 Capital and Ab Large

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

The idea behind Oppenheimer Capital Appreciation and Ab Large Cap 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.