Correlation Between Oppenheimer Developing and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Developing and Glg Intl 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 Developing and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Developing Markets and Glg Intl Small, you can compare the effects of market volatilities on Oppenheimer Developing and Glg Intl 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 Developing with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Developing and Glg Intl.
Diversification Opportunities for Oppenheimer Developing and Glg Intl
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Glg is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Developing Markets and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small and Oppenheimer Developing 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 Developing Markets are associated (or correlated) with Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Oppenheimer Developing i.e., Oppenheimer Developing and Glg Intl go up and down completely randomly.
Pair Corralation between Oppenheimer Developing and Glg Intl
Assuming the 90 days horizon Oppenheimer Developing is expected to generate 1.26 times less return on investment than Glg Intl. But when comparing it to its historical volatility, Oppenheimer Developing Markets is 1.28 times less risky than Glg Intl. It trades about 0.19 of its potential returns per unit of risk. Glg Intl Small is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 8,184 in Glg Intl Small on May 1, 2025 and sell it today you would earn a total of 920.00 from holding Glg Intl Small or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Developing Markets vs. Glg Intl Small
Performance |
| Timeline |
| Oppenheimer Developing |
| Glg Intl Small |
Oppenheimer Developing and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Developing and Glg Intl
The main advantage of trading using opposite Oppenheimer Developing and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Developing position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.| Oppenheimer Developing vs. Tweedy Browne Global | Oppenheimer Developing vs. The Hartford Global | Oppenheimer Developing vs. Mirova Global Sustainable | Oppenheimer Developing vs. Jhancock Global Equity |
| Glg Intl vs. Old Westbury California | Glg Intl vs. Flexible Bond Portfolio | Glg Intl vs. Enhanced Fixed Income | Glg Intl vs. Morningstar Defensive 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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