Correlation Between Multisector Bond and Oppenheimer Strat
Can any of the company-specific risk be diversified away by investing in both Multisector Bond and Oppenheimer Strat 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 Multisector Bond and Oppenheimer Strat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and Oppenheimer Strat Incm, you can compare the effects of market volatilities on Multisector Bond and Oppenheimer Strat 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 Multisector Bond with a short position of Oppenheimer Strat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and Oppenheimer Strat.
Diversification Opportunities for Multisector Bond and Oppenheimer Strat
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Multisector and Oppenheimer is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma and Oppenheimer Strat Incm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Strat Incm and Multisector Bond 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 Multisector Bond Sma are associated (or correlated) with Oppenheimer Strat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Strat Incm has no effect on the direction of Multisector Bond i.e., Multisector Bond and Oppenheimer Strat go up and down completely randomly.
Pair Corralation between Multisector Bond and Oppenheimer Strat
Assuming the 90 days horizon Multisector Bond Sma is expected to generate 1.0 times more return on investment than Oppenheimer Strat. However, Multisector Bond Sma is 1.0 times less risky than Oppenheimer Strat. It trades about 0.13 of its potential returns per unit of risk. Oppenheimer Strat Incm is currently generating about 0.09 per unit of risk. If you would invest 1,117 in Multisector Bond Sma on June 12, 2025 and sell it today you would earn a total of 329.00 from holding Multisector Bond Sma or generate 29.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multisector Bond Sma vs. Oppenheimer Strat Incm
Performance |
| Timeline |
| Multisector Bond Sma |
| Oppenheimer Strat Incm |
Multisector Bond and Oppenheimer Strat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and Oppenheimer Strat
The main advantage of trading using opposite Multisector Bond and Oppenheimer Strat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond position performs unexpectedly, Oppenheimer Strat 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 Strat will offset losses from the drop in Oppenheimer Strat's long position.| Multisector Bond vs. Msift High Yield | Multisector Bond vs. Mesirow Financial High | Multisector Bond vs. Blackrock High Income | Multisector Bond vs. T Rowe Price |
| Oppenheimer Strat vs. Templeton Global Bond | Oppenheimer Strat vs. Templeton Global Bond | Oppenheimer Strat vs. Capital World Bond | Oppenheimer Strat vs. Capital World Bond |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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