Correlation Between Oppenheimer Holdings and Moelis

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

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

Diversification Opportunities for Oppenheimer Holdings and Moelis

0.55

Correlation Coefficient

Oppenheimer Holdings  Moelis

Very weak diversification

The 3 months correlation between Oppenheimer and Moelis is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Moelis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moelis and Oppenheimer Holdings 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 Holdings are associated (or correlated) with Moelis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moelis has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Moelis go up and down completely randomly.

Pair Corralation between Oppenheimer Holdings and Moelis

Considering the 90-day investment horizon Oppenheimer Holdings is expected to generate 1.07 times more return on investment than Moelis. However, Oppenheimer Holdings is 1.07 times more volatile than Moelis Co. It trades about 0.06 of its potential returns per unit of risk. Moelis Co is currently generating about -0.06 per unit of risk. If you would invest  6,154  in Oppenheimer Holdings on November 28, 2024 and sell it today you would earn a total of  407.00  from holding Oppenheimer Holdings or generate 6.61% return on investment over 90 days.

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

Oppenheimer Holdings  vs.  Moelis Co

Oppenheimer Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Oppenheimer Holdings may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Moelis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moelis Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Oppenheimer Holdings and Moelis

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

The idea behind Oppenheimer Holdings and Moelis Co 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.