Correlation Between Balanced Fund and Vy(r) Oppenheimer

Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Vy(r) Oppenheimer 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 Balanced Fund and Vy(r) Oppenheimer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Balanced Fund Retail and Vy Oppenheimer Global, you can compare the effects of market volatilities on Balanced Fund and Vy(r) Oppenheimer 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 Balanced Fund with a short position of Vy(r) Oppenheimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Vy(r) Oppenheimer.

Diversification Opportunities for Balanced Fund and Vy(r) Oppenheimer

0.99

Correlation Coefficient

Balanced Fund  Vy(r) Oppenheimer

No risk reduction

The 3 months correlation between Balanced and Vy(r) is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail and Vy Oppenheimer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Oppenheimer Global and Balanced Fund 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 Balanced Fund Retail are associated (or correlated) with Vy(r) Oppenheimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Oppenheimer Global has no effect on the direction of Balanced Fund i.e., Balanced Fund and Vy(r) Oppenheimer go up and down completely randomly.

Pair Corralation between Balanced Fund and Vy(r) Oppenheimer

Assuming the 90 days horizon Balanced Fund is expected to generate 1.72 times less return on investment than Vy(r) Oppenheimer. But when comparing it to its historical volatility, Balanced Fund Retail is 1.45 times less risky than Vy(r) Oppenheimer. It trades about 0.33 of its potential returns per unit of risk. Vy Oppenheimer Global is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest  641.00  in Vy Oppenheimer Global on April 22, 2025 and sell it today you would earn a total of  120.00  from holding Vy Oppenheimer Global or generate 18.72% return on investment over 90 days.

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

Balanced Fund Retail  vs.  Vy Oppenheimer Global

Balanced Fund Retail

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Balanced Fund Retail are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Balanced Fund may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Vy Oppenheimer Global

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Oppenheimer Global are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Vy(r) Oppenheimer showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Balanced Fund and Vy(r) Oppenheimer

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

The idea behind Balanced Fund Retail and Vy Oppenheimer Global 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.