Correlation Between Pax High and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Pax High and Oppenheimer Main 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 Pax High and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pax High Yield and Oppenheimer Main Street, you can compare the effects of market volatilities on Pax High and Oppenheimer Main 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 Pax High with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pax High and Oppenheimer Main.
Diversification Opportunities for Pax High and Oppenheimer Main
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pax and Oppenheimer is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Pax High Yield and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street and Pax High 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 Pax High Yield are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Street has no effect on the direction of Pax High i.e., Pax High and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Pax High and Oppenheimer Main
Assuming the 90 days horizon Pax High Yield is expected to generate 0.18 times more return on investment than Oppenheimer Main. However, Pax High Yield is 5.59 times less risky than Oppenheimer Main. It trades about 0.08 of its potential returns per unit of risk. Oppenheimer Main Street is currently generating about -0.04 per unit of risk. If you would invest 596.00 in Pax High Yield on December 29, 2024 and sell it today you would earn a total of 6.00 from holding Pax High Yield or generate 1.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Pax High Yield vs. Oppenheimer Main Street
Performance |
Timeline |
Pax High Yield |
Oppenheimer Main Street |
Pax High and Oppenheimer Main Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pax High and Oppenheimer Main
The main advantage of trading using opposite Pax High and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pax High position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main's long position.Pax High vs. Putnam Convertible Securities | Pax High vs. Rationalpier 88 Convertible | Pax High vs. Gabelli Convertible And | Pax High vs. Absolute Convertible Arbitrage |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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