Correlation Between TCJH Old and Oppenheimer Holdings

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

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

Diversification Opportunities for TCJH Old and Oppenheimer Holdings

0.0

Correlation Coefficient

TCJH Old  Oppenheimer Holdings

Pay attention - limited upside

The 3 months correlation between TCJH and Oppenheimer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TCJH Old and Oppenheimer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Holdings and TCJH Old 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 TCJH Old are associated (or correlated) with Oppenheimer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Holdings has no effect on the direction of TCJH Old i.e., TCJH Old and Oppenheimer Holdings go up and down completely randomly.

Pair Corralation between TCJH Old and Oppenheimer Holdings

If you would invest  6,154  in Oppenheimer Holdings on November 28, 2024 and sell it today you would earn a total of  407.00  from holding Oppenheimer Holdings or generate 6.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

TCJH Old  vs.  Oppenheimer Holdings

TCJH Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days TCJH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward-looking indicators, TCJH Old is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Oppenheimer Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Oppenheimer Holdings may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with TCJH Old and Oppenheimer Holdings

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

The idea behind TCJH Old and Oppenheimer Holdings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.