Correlation Between Oppenheimer Roc and Nuveen High

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

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

Diversification Opportunities for Oppenheimer Roc and Nuveen High

0.76

Correlation Coefficient

Oppenheimer Roc  Nuveen High

Poor diversification

The 3 months correlation between Oppenheimer and Nuveen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Roc High and Nuveen High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen High Yield and Oppenheimer Roc 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 Roc High are associated (or correlated) with Nuveen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen High Yield has no effect on the direction of Oppenheimer Roc i.e., Oppenheimer Roc and Nuveen High go up and down completely randomly.

Pair Corralation between Oppenheimer Roc and Nuveen High

Assuming the 90 days horizon Oppenheimer Roc is expected to generate 1.62 times less return on investment than Nuveen High. But when comparing it to its historical volatility, Oppenheimer Roc High is 1.19 times less risky than Nuveen High. It trades about 0.4 of its potential returns per unit of risk. Nuveen High Yield is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest  1,480  in Nuveen High Yield on September 12, 2024 and sell it today you would earn a total of  37.00  from holding Nuveen High Yield or generate 2.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Oppenheimer Roc High  vs.  Nuveen High Yield

Oppenheimer Roc High

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Roc High are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Oppenheimer Roc is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen High Yield

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen High Yield are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Nuveen High 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 Roc and Nuveen High

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

The idea behind Oppenheimer Roc High and Nuveen High Yield 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.