Correlation Between Aig Government and Oppenheimer Intl
Can any of the company-specific risk be diversified away by investing in both Aig Government 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 Aig Government and Oppenheimer Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aig Government Money and Oppenheimer Intl Small, you can compare the effects of market volatilities on Aig Government 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 Aig Government with a short position of Oppenheimer Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Oppenheimer Intl.
Diversification Opportunities for Aig Government and Oppenheimer Intl
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aig and Oppenheimer is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Oppenheimer Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Intl Small and Aig Government 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 Aig Government Money 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 Small has no effect on the direction of Aig Government i.e., Aig Government and Oppenheimer Intl go up and down completely randomly.
Pair Corralation between Aig Government and Oppenheimer Intl
Assuming the 90 days horizon Aig Government Money is expected to under-perform the Oppenheimer Intl. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aig Government Money is 4.97 times less risky than Oppenheimer Intl. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Oppenheimer Intl Small is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,360 in Oppenheimer Intl Small on December 29, 2024 and sell it today you would earn a total of 124.00 from holding Oppenheimer Intl Small or generate 3.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aig Government Money vs. Oppenheimer Intl Small
Performance |
Timeline |
Aig Government Money |
Oppenheimer Intl Small |
Aig Government and Oppenheimer Intl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aig Government and Oppenheimer Intl
The main advantage of trading using opposite Aig Government and Oppenheimer Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government 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.Aig Government vs. Mfs Diversified Income | Aig Government vs. Madison Diversified Income | Aig Government vs. Oppenheimer International Diversified | Aig Government vs. American Century Diversified |
Oppenheimer Intl vs. Short Small Cap Profund | Oppenheimer Intl vs. Lsv Small Cap | Oppenheimer Intl vs. Amg River Road | Oppenheimer Intl vs. Ashmore Emerging Markets |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |