Correlation Between Oppenheimer International and Catalystexceed Defined

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

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

Diversification Opportunities for Oppenheimer International and Catalystexceed Defined

-0.47

Correlation Coefficient

Oppenheimer International  Catalystexceed Defined

Very good diversification

The 3 months correlation between Oppenheimer and Catalystexceed is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer International Dive and Catalystexceed Defined Shield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystexceed Defined and Oppenheimer International 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 Oppenheimer International Diversified are associated (or correlated) with Catalystexceed Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystexceed Defined has no effect on the direction of Oppenheimer International i.e., Oppenheimer International and Catalystexceed Defined go up and down completely randomly.

Pair Corralation between Oppenheimer International and Catalystexceed Defined

Assuming the 90 days horizon Oppenheimer International Diversified is expected to under-perform the Catalystexceed Defined. In addition to that, Oppenheimer International is 2.15 times more volatile than Catalystexceed Defined Shield. It trades about -0.05 of its total potential returns per unit of risk. Catalystexceed Defined Shield is currently generating about 0.17 per unit of volatility. If you would invest  972.00  in Catalystexceed Defined Shield on September 13, 2024 and sell it today you would earn a total of  38.00  from holding Catalystexceed Defined Shield or generate 3.91% return on investment over 90 days.

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

Oppenheimer International Dive  vs.  Catalystexceed Defined Shield

Oppenheimer International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Catalystexceed Defined

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystexceed Defined Shield are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Catalystexceed Defined is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oppenheimer International and Catalystexceed Defined

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

The idea behind Oppenheimer International Diversified and Catalystexceed Defined Shield 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.