Correlation Between Oppenheimer Capital and Oppenheimer Intl

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

Diversification Opportunities for Oppenheimer Capital and Oppenheimer Intl

-0.33

Correlation Coefficient

Oppenheimer Capital  Oppenheimer Intl

Very good diversification

The 3 months correlation between Oppenheimer and Oppenheimer is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Capital Appreciati and Oppenheimer Intl Grwth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Intl Grwth 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 Oppenheimer Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Intl Grwth has no effect on the direction of Oppenheimer Capital i.e., Oppenheimer Capital and Oppenheimer Intl go up and down completely randomly.

Pair Corralation between Oppenheimer Capital and Oppenheimer Intl

Assuming the 90 days horizon Oppenheimer Capital Appreciation is expected to generate 0.74 times more return on investment than Oppenheimer Intl. However, Oppenheimer Capital Appreciation is 1.36 times less risky than Oppenheimer Intl. It trades about 0.05 of its potential returns per unit of risk. Oppenheimer Intl Grwth is currently generating about -0.17 per unit of risk. If you would invest  9,655  in Oppenheimer Capital Appreciation on October 9, 2024 and sell it today you would earn a total of  294.00  from holding Oppenheimer Capital Appreciation or generate 3.05% return on investment over 90 days.

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

Oppenheimer Capital Appreciati  vs.  Oppenheimer Intl Grwth

Oppenheimer Capital

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Capital Appreciation are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Oppenheimer Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oppenheimer Intl Grwth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oppenheimer Intl Grwth 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.

Pair Trading with Oppenheimer Capital and Oppenheimer Intl

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

The idea behind Oppenheimer Capital Appreciation and Oppenheimer Intl Grwth 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.