Correlation Between Oppenheimer Capital and Dunham Large

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

Diversification Opportunities for Oppenheimer Capital and Dunham Large

0.74

Correlation Coefficient

Oppenheimer Capital  Dunham Large

Poor diversification

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

Pair Corralation between Oppenheimer Capital and Dunham Large

Assuming the 90 days horizon Oppenheimer Capital Appreciation is expected to under-perform the Dunham Large. In addition to that, Oppenheimer Capital is 2.25 times more volatile than Dunham Large Cap. It trades about -0.12 of its total potential returns per unit of risk. Dunham Large Cap is currently generating about 0.0 per unit of volatility. If you would invest  1,909  in Dunham Large Cap on December 30, 2024 and sell it today you would lose (1.00) from holding Dunham Large Cap or give up 0.05% of portfolio value over 90 days.

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

Oppenheimer Capital Appreciati  vs.  Dunham Large Cap

Oppenheimer Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oppenheimer Capital Appreciation 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 April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Dunham Large Cap

Risk-Adjusted Performance

Very Weak

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

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

The idea behind Oppenheimer Capital Appreciation and Dunham 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.