Correlation Between Piper Sandler and Oppenheimer Holdings

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Can any of the company-specific risk be diversified away by investing in both Piper Sandler and Oppenheimer Holdings 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 Piper Sandler and Oppenheimer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piper Sandler Companies and Oppenheimer Holdings, you can compare the effects of market volatilities on Piper Sandler and Oppenheimer Holdings 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 Piper Sandler with a short position of Oppenheimer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piper Sandler and Oppenheimer Holdings.

Diversification Opportunities for Piper Sandler and Oppenheimer Holdings

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Piper and Oppenheimer is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Piper Sandler Companies and Oppenheimer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Holdings and Piper Sandler 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 Piper Sandler Companies are associated (or correlated) with Oppenheimer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Holdings has no effect on the direction of Piper Sandler i.e., Piper Sandler and Oppenheimer Holdings go up and down completely randomly.

Pair Corralation between Piper Sandler and Oppenheimer Holdings

Given the investment horizon of 90 days Piper Sandler Companies is expected to generate 1.01 times more return on investment than Oppenheimer Holdings. However, Piper Sandler is 1.01 times more volatile than Oppenheimer Holdings. It trades about 0.01 of its potential returns per unit of risk. Oppenheimer Holdings is currently generating about -0.04 per unit of risk. If you would invest  32,032  in Piper Sandler Companies on August 4, 2025 and sell it today you would lose (106.00) from holding Piper Sandler Companies or give up 0.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Piper Sandler Companies  vs.  Oppenheimer Holdings

 Performance 
       Timeline  
Piper Sandler Companies 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Piper Sandler Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Piper Sandler is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Oppenheimer Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Oppenheimer Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Oppenheimer Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Piper Sandler and Oppenheimer Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Piper Sandler and Oppenheimer Holdings

The main advantage of trading using opposite Piper Sandler and Oppenheimer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piper Sandler position performs unexpectedly, Oppenheimer Holdings 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 Holdings will offset losses from the drop in Oppenheimer Holdings' long position.
The idea behind Piper Sandler Companies and Oppenheimer Holdings 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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