Correlation Between Oppenheimer Intl and Hood River

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

Diversification Opportunities for Oppenheimer Intl and Hood River

-0.4

Correlation Coefficient

Oppenheimer Intl  Hood River

Very good diversification

The 3 months correlation between Oppenheimer and Hood is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Intl Small and Hood River International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hood River International 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 Hood River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hood River International has no effect on the direction of Oppenheimer Intl i.e., Oppenheimer Intl and Hood River go up and down completely randomly.

Pair Corralation between Oppenheimer Intl and Hood River

Assuming the 90 days horizon Oppenheimer Intl Small is expected to under-perform the Hood River. In addition to that, Oppenheimer Intl is 2.04 times more volatile than Hood River International. It trades about -0.31 of its total potential returns per unit of risk. Hood River International is currently generating about -0.11 per unit of volatility. If you would invest  1,238  in Hood River International on October 7, 2024 and sell it today you would lose (34.00) from holding Hood River International or give up 2.75% of portfolio value over 90 days.

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

Oppenheimer Intl Small  vs.  Hood River International

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 weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Hood River International

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hood River International are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Hood River may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Oppenheimer Intl and Hood River

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

The idea behind Oppenheimer Intl Small and Hood River International 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.