Correlation Between Oppenheimer Intl and Oppenheimer Flexible

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

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

Diversification Opportunities for Oppenheimer Intl and Oppenheimer Flexible

0.68

Correlation Coefficient

Oppenheimer Intl  Oppenheimer Flexible

Poor diversification

The 3 months correlation between Oppenheimer and Oppenheimer is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Intl Small and Oppenheimer Flexible Strategie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Flexible and Oppenheimer Intl 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 Intl Small are associated (or correlated) with Oppenheimer Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Flexible has no effect on the direction of Oppenheimer Intl i.e., Oppenheimer Intl and Oppenheimer Flexible go up and down completely randomly.

Pair Corralation between Oppenheimer Intl and Oppenheimer Flexible

Assuming the 90 days horizon Oppenheimer Intl Small is expected to under-perform the Oppenheimer Flexible. In addition to that, Oppenheimer Intl is 6.44 times more volatile than Oppenheimer Flexible Strategies. It trades about -0.13 of its total potential returns per unit of risk. Oppenheimer Flexible Strategies is currently generating about 0.03 per unit of volatility. If you would invest  2,365  in Oppenheimer Flexible Strategies on October 25, 2024 and sell it today you would earn a total of  10.00  from holding Oppenheimer Flexible Strategies or generate 0.42% return on investment over 90 days.

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

Oppenheimer Intl Small  vs.  Oppenheimer Flexible Strategie

Oppenheimer Intl Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oppenheimer Intl Small 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.

Oppenheimer Flexible

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Flexible Strategies are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Oppenheimer Flexible 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 Intl and Oppenheimer Flexible

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

The idea behind Oppenheimer Intl Small and Oppenheimer Flexible Strategies 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.