Correlation Between Vy Baron and Oppenheimer Cap

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

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

Diversification Opportunities for Vy Baron and Oppenheimer Cap

0.68

Correlation Coefficient

Vy Baron  Oppenheimer Cap

Poor diversification

The 3 months correlation between IBSSX and Oppenheimer is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Vy Baron Growth and Oppenheimer Cap Apprec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Cap Apprec and Vy Baron 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 Vy Baron Growth are associated (or correlated) with Oppenheimer Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Cap Apprec has no effect on the direction of Vy Baron i.e., Vy Baron and Oppenheimer Cap go up and down completely randomly.

Pair Corralation between Vy Baron and Oppenheimer Cap

Assuming the 90 days horizon Vy Baron Growth is expected to under-perform the Oppenheimer Cap. But the mutual fund apears to be less risky and, when comparing its historical volatility, Vy Baron Growth is 1.18 times less risky than Oppenheimer Cap. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Oppenheimer Cap Apprec is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  7,107  in Oppenheimer Cap Apprec on September 22, 2024 and sell it today you would earn a total of  313.00  from holding Oppenheimer Cap Apprec or generate 4.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Vy Baron Growth  vs.  Oppenheimer Cap Apprec

Vy Baron Growth

Risk-Adjusted Performance

0 of 100

Very Weak

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

Oppenheimer Cap Apprec

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Cap Apprec are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Oppenheimer Cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vy Baron and Oppenheimer Cap

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

The idea behind Vy Baron Growth and Oppenheimer Cap Apprec 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.