Correlation Between Oppenheimer Cap and Oppenheimer Developing

Can any of the company-specific risk be diversified away by investing in both Oppenheimer Cap and Oppenheimer Developing 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 Cap and Oppenheimer Developing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oppenheimer Cap Apprec and Oppenheimer Developing Markets, you can compare the effects of market volatilities on Oppenheimer Cap and Oppenheimer Developing 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 Cap with a short position of Oppenheimer Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Cap and Oppenheimer Developing.

Diversification Opportunities for Oppenheimer Cap and Oppenheimer Developing

0.91

Correlation Coefficient

Oppenheimer Cap  Oppenheimer Developing

Almost no diversification

The 3 months correlation between Oppenheimer and Oppenheimer is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Cap Apprec and Oppenheimer Developing Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Developing and Oppenheimer Cap 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 Cap Apprec are associated (or correlated) with Oppenheimer Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Developing has no effect on the direction of Oppenheimer Cap i.e., Oppenheimer Cap and Oppenheimer Developing go up and down completely randomly.

Pair Corralation between Oppenheimer Cap and Oppenheimer Developing

Assuming the 90 days horizon Oppenheimer Cap Apprec is expected to generate 1.3 times more return on investment than Oppenheimer Developing. However, Oppenheimer Cap is 1.3 times more volatile than Oppenheimer Developing Markets. It trades about 0.28 of its potential returns per unit of risk. Oppenheimer Developing Markets is currently generating about 0.14 per unit of risk. If you would invest  6,715  in Oppenheimer Cap Apprec on May 7, 2025 and sell it today you would earn a total of  1,205  from holding Oppenheimer Cap Apprec or generate 17.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Oppenheimer Cap Apprec  vs.  Oppenheimer Developing Markets

Oppenheimer Cap Apprec

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Cap Apprec are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Oppenheimer Cap showed solid returns over the last few months and may actually be approaching a breakup point.

Oppenheimer Developing

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Developing Markets are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Oppenheimer Developing may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Oppenheimer Cap and Oppenheimer Developing

The main advantage of trading using opposite Oppenheimer Cap and Oppenheimer Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Cap position performs unexpectedly, Oppenheimer Developing 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 Developing will offset losses from the drop in Oppenheimer Developing's long position.

The idea behind Oppenheimer Cap Apprec and Oppenheimer Developing Markets 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.