Correlation Between Oppenheimer Target and Invesco Sp

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

By analyzing existing cross correlation between Oppenheimer Target and Invesco Sp 500, you can compare the effects of market volatilities on Oppenheimer Target and Invesco Sp 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 Target with a short position of Invesco Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Target and Invesco Sp.

Diversification Opportunities for Oppenheimer Target and Invesco Sp

0.99

Correlation Coefficient

Oppenheimer Target  Invesco Sp

No risk reduction

The 3 months correlation between Oppenheimer and Invesco is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Target and Invesco Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Sp 500 and Oppenheimer Target 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 Target are associated (or correlated) with Invesco Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Sp 500 has no effect on the direction of Oppenheimer Target i.e., Oppenheimer Target and Invesco Sp go up and down completely randomly.

Pair Corralation between Oppenheimer Target and Invesco Sp

Assuming the 90 days horizon Oppenheimer Target is expected to generate 1.34 times more return on investment than Invesco Sp. However, Oppenheimer Target is 1.34 times more volatile than Invesco Sp 500. It trades about 0.31 of its potential returns per unit of risk. Invesco Sp 500 is currently generating about 0.38 per unit of risk. If you would invest  4,210  in Oppenheimer Target on September 4, 2024 and sell it today you would earn a total of  276.00  from holding Oppenheimer Target or generate 6.56% return on investment over 90 days.

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

Oppenheimer Target  vs.  Invesco Sp 500

Oppenheimer Target

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Target are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Oppenheimer Target showed solid returns over the last few months and may actually be approaching a breakup point.

Invesco Sp 500

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Sp 500 are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Invesco Sp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Oppenheimer Target and Invesco Sp

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

The idea behind Oppenheimer Target and Invesco Sp 500 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.

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.