Correlation Between Oppenheimer Capital and Citizensselect Funds

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

Diversification Opportunities for Oppenheimer Capital and Citizensselect Funds

0.74

Correlation Coefficient

Oppenheimer Capital  Citizensselect Funds

Poor diversification

The 3 months correlation between Oppenheimer and Citizensselect is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Capital Appreciati and Citizensselect Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizensselect Funds 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 Citizensselect Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizensselect Funds has no effect on the direction of Oppenheimer Capital i.e., Oppenheimer Capital and Citizensselect Funds go up and down completely randomly.

Pair Corralation between Oppenheimer Capital and Citizensselect Funds

If you would invest  10,151  in Oppenheimer Capital Appreciation on September 27, 2024 and sell it today you would earn a total of  54.00  from holding Oppenheimer Capital Appreciation or generate 0.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Oppenheimer Capital Appreciati  vs.  Citizensselect Funds

Oppenheimer Capital

Risk-Adjusted Performance

9 of 100

OK

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

Citizensselect Funds

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citizensselect Funds are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Citizensselect Funds 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 Citizensselect Funds

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

The idea behind Oppenheimer Capital Appreciation and Citizensselect Funds 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.