Correlation Between Sterling Capital and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Oppenheimer Gold 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 Sterling Capital and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Intermediate and Oppenheimer Gold Special, you can compare the effects of market volatilities on Sterling Capital and Oppenheimer Gold 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 Sterling Capital with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Oppenheimer Gold.
Diversification Opportunities for Sterling Capital and Oppenheimer Gold
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sterling and Oppenheimer is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Intermediate and Oppenheimer Gold Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Gold Special and Sterling Capital 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 Sterling Capital Intermediate are associated (or correlated) with Oppenheimer Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Gold Special has no effect on the direction of Sterling Capital i.e., Sterling Capital and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Sterling Capital and Oppenheimer Gold
Assuming the 90 days horizon Sterling Capital is expected to generate 6.12 times less return on investment than Oppenheimer Gold. But when comparing it to its historical volatility, Sterling Capital Intermediate is 5.17 times less risky than Oppenheimer Gold. It trades about 0.04 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,883 in Oppenheimer Gold Special on September 5, 2024 and sell it today you would earn a total of 643.00 from holding Oppenheimer Gold Special or generate 34.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sterling Capital Intermediate vs. Oppenheimer Gold Special
Performance |
| Timeline |
| Sterling Capital Int |
| Oppenheimer Gold Special |
Sterling Capital and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Oppenheimer Gold
The main advantage of trading using opposite Sterling Capital and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Oppenheimer Gold 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 Gold will offset losses from the drop in Oppenheimer Gold's long position.| Sterling Capital vs. Oppenheimer Gold Special | Sterling Capital vs. Invesco Gold Special | Sterling Capital vs. Global Gold Fund | Sterling Capital vs. Gamco Global Gold |
| Oppenheimer Gold vs. First American Funds | Oppenheimer Gold vs. Prudential Government Money | Oppenheimer Gold vs. Rbc Funds Trust | Oppenheimer Gold vs. Hsbc Treasury Money |
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 CEOs Directory module to screen CEOs from public companies around the world.
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