Correlation Between Oppenheimer Strategic and Aim Taxexempt
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Strategic and Aim Taxexempt 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 Strategic and Aim Taxexempt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Strategic Income and Aim Taxexempt Funds, you can compare the effects of market volatilities on Oppenheimer Strategic and Aim Taxexempt 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 Strategic with a short position of Aim Taxexempt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Strategic and Aim Taxexempt.
Diversification Opportunities for Oppenheimer Strategic and Aim Taxexempt
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Aim is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Strategic Income and Aim Taxexempt Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Taxexempt Funds and Oppenheimer Strategic 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 Strategic Income are associated (or correlated) with Aim Taxexempt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Taxexempt Funds has no effect on the direction of Oppenheimer Strategic i.e., Oppenheimer Strategic and Aim Taxexempt go up and down completely randomly.
Pair Corralation between Oppenheimer Strategic and Aim Taxexempt
Assuming the 90 days horizon Oppenheimer Strategic Income is expected to generate 1.54 times more return on investment than Aim Taxexempt. However, Oppenheimer Strategic is 1.54 times more volatile than Aim Taxexempt Funds. It trades about 0.04 of its potential returns per unit of risk. Aim Taxexempt Funds is currently generating about 0.05 per unit of risk. If you would invest 279.00 in Oppenheimer Strategic Income on March 13, 2024 and sell it today you would earn a total of 25.00 from holding Oppenheimer Strategic Income or generate 8.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Oppenheimer Strategic Income vs. Aim Taxexempt Funds
Performance |
Timeline |
Oppenheimer Strategic |
Aim Taxexempt Funds |
Oppenheimer Strategic and Aim Taxexempt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oppenheimer Strategic and Aim Taxexempt
The main advantage of trading using opposite Oppenheimer Strategic and Aim Taxexempt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Strategic position performs unexpectedly, Aim Taxexempt 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 Aim Taxexempt will offset losses from the drop in Aim Taxexempt's long position.Oppenheimer Strategic vs. Templeton Global Bond | Oppenheimer Strategic vs. Capital World Bond | Oppenheimer Strategic vs. Capital World Bond | Oppenheimer Strategic vs. Capital World Bond |
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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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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