Correlation Between Oppenheimer Strategic and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Strategic and Invesco Municipal 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 Invesco Municipal 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 Invesco Municipal Income, you can compare the effects of market volatilities on Oppenheimer Strategic and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Strategic and Invesco Municipal.
Diversification Opportunities for Oppenheimer Strategic and Invesco Municipal
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oppenheimer and Invesco is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Strategic Income and Invesco Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Income 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 Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Income has no effect on the direction of Oppenheimer Strategic i.e., Oppenheimer Strategic and Invesco Municipal go up and down completely randomly.
Pair Corralation between Oppenheimer Strategic and Invesco Municipal
Assuming the 90 days horizon Oppenheimer Strategic Income is expected to generate 1.89 times more return on investment than Invesco Municipal. However, Oppenheimer Strategic is 1.89 times more volatile than Invesco Municipal Income. It trades about 0.1 of its potential returns per unit of risk. Invesco Municipal Income is currently generating about -0.01 per unit of risk. If you would invest 315.00 in Oppenheimer Strategic Income on June 6, 2025 and sell it today you would earn a total of 8.00 from holding Oppenheimer Strategic Income or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Oppenheimer Strategic Income vs. Invesco Municipal Income
Performance |
| Timeline |
| Oppenheimer Strategic |
| Invesco Municipal Income |
Oppenheimer Strategic and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Strategic and Invesco Municipal
The main advantage of trading using opposite Oppenheimer Strategic and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Strategic position performs unexpectedly, Invesco Municipal 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 Municipal will offset losses from the drop in Invesco Municipal's long position.| Oppenheimer Strategic vs. Templeton Global Balanced | Oppenheimer Strategic vs. Calvert Global Energy | Oppenheimer Strategic vs. Ab Global Bond | Oppenheimer Strategic vs. Jhancock Global Equity |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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