Correlation Between Fidelity Small and Oppenheimer Main

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fidelity Small and Oppenheimer Main 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 Fidelity Small and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Small Cap and Oppenheimer Main Street, you can compare the effects of market volatilities on Fidelity Small and Oppenheimer Main 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 Fidelity Small with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Oppenheimer Main.

Diversification Opportunities for Fidelity Small and Oppenheimer Main

0.98
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Fidelity and Oppenheimer is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY SMALL CAP and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street and Fidelity Small 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 Fidelity Small Cap are associated (or correlated) with Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Street has no effect on the direction of Fidelity Small i.e., Fidelity Small and Oppenheimer Main go up and down completely randomly.

Pair Corralation between Fidelity Small and Oppenheimer Main

Assuming the 90 days horizon Fidelity Small Cap is expected to generate 1.2 times more return on investment than Oppenheimer Main. However, Fidelity Small is 1.2 times more volatile than Oppenheimer Main Street. It trades about 0.04 of its potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.04 per unit of risk. If you would invest  2,443  in Fidelity Small Cap on November 24, 2023 and sell it today you would earn a total of  25.00  from holding Fidelity Small Cap or generate 1.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

FIDELITY SMALL CAP  vs.  Oppenheimer Main Street

 Performance 
       Timeline  
Fidelity Small Cap 

Risk-Adjusted Performance

8 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Small Cap are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Small may actually be approaching a critical reversion point that can send shares even higher in March 2024.
Oppenheimer Main Street 

Risk-Adjusted Performance

11 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Main Street 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 Main may actually be approaching a critical reversion point that can send shares even higher in March 2024.

Fidelity Small and Oppenheimer Main Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity Small and Oppenheimer Main

The main advantage of trading using opposite Fidelity Small and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main's long position.
The idea behind Fidelity Small Cap and Oppenheimer Main Street 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Global Correlations
Find global opportunities by holding instruments from different markets
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities