Correlation Between Pace Select and Oppenheimer Strategic

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

By analyzing existing cross correlation between Pace Select Advisors and Oppenheimer Strategic Income, you can compare the effects of market volatilities on Pace Select and Oppenheimer Strategic 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 Pace Select with a short position of Oppenheimer Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Select and Oppenheimer Strategic.

Diversification Opportunities for Pace Select and Oppenheimer Strategic

-0.8

Correlation Coefficient

Pace Select  Oppenheimer Strategic

Pay attention - limited upside

The 3 months correlation between Pace and Oppenheimer is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Pace Select Advisors and Oppenheimer Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Strategic and Pace Select 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 Pace Select Advisors are associated (or correlated) with Oppenheimer Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Strategic has no effect on the direction of Pace Select i.e., Pace Select and Oppenheimer Strategic go up and down completely randomly.

Pair Corralation between Pace Select and Oppenheimer Strategic

If you would invest  100.00  in Pace Select Advisors on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Pace Select Advisors or generate 0.0% return on investment over 90 days.

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

Pace Select Advisors  vs.  Oppenheimer Strategic Income

Pace Select Advisors

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pace Select Advisors are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pace Select is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oppenheimer Strategic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oppenheimer Strategic Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Oppenheimer Strategic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pace Select and Oppenheimer Strategic

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

The idea behind Pace Select Advisors and Oppenheimer Strategic Income 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.