Correlation Between Goldman Sachs and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Oppenheimer International 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 Goldman Sachs and Oppenheimer International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Financial and Oppenheimer International Diversified, you can compare the effects of market volatilities on Goldman Sachs and Oppenheimer International 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 Goldman Sachs with a short position of Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Oppenheimer International.
Diversification Opportunities for Goldman Sachs and Oppenheimer International
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goldman and Oppenheimer is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Financial and Oppenheimer International Dive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International and Goldman Sachs 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 Goldman Sachs Financial are associated (or correlated) with Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Oppenheimer International go up and down completely randomly.
Pair Corralation between Goldman Sachs and Oppenheimer International
Assuming the 90 days horizon Goldman Sachs Financial is expected to generate 28.85 times more return on investment than Oppenheimer International. However, Goldman Sachs is 28.85 times more volatile than Oppenheimer International Diversified. It trades about 0.06 of its potential returns per unit of risk. Oppenheimer International Diversified is currently generating about 0.0 per unit of risk. If you would invest 375.00 in Goldman Sachs Financial on September 2, 2024 and sell it today you would lose (275.00) from holding Goldman Sachs Financial or give up 73.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.83% |
| Values | Daily Returns |
Goldman Sachs Financial vs. Oppenheimer International Dive
Performance |
| Timeline |
| Goldman Sachs Financial |
| Oppenheimer International |
Goldman Sachs and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Oppenheimer International
The main advantage of trading using opposite Goldman Sachs and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Oppenheimer International 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 International will offset losses from the drop in Oppenheimer International's long position.| Goldman Sachs vs. Vanguard Total Stock | Goldman Sachs vs. Vanguard 500 Index | Goldman Sachs vs. Vanguard Total Stock | Goldman Sachs vs. Vanguard Total Stock |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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