Correlation Between Goldman Sachs and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Clean and Oppenheimer Gold Special, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Oppenheimer Gold.
Diversification Opportunities for Goldman Sachs and Oppenheimer Gold
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Goldman and Oppenheimer is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Clean 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 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 Clean 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 Goldman Sachs i.e., Goldman Sachs and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Goldman Sachs and Oppenheimer Gold
Assuming the 90 days horizon Goldman Sachs Clean is expected to generate 0.76 times more return on investment than Oppenheimer Gold. However, Goldman Sachs Clean is 1.31 times less risky than Oppenheimer Gold. It trades about -0.22 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about -0.19 per unit of risk. If you would invest 948.00 in Goldman Sachs Clean on August 28, 2024 and sell it today you would lose (68.00) from holding Goldman Sachs Clean or give up 7.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Clean vs. Oppenheimer Gold Special
Performance |
| Timeline |
| Goldman Sachs Clean |
| Oppenheimer Gold Special |
Goldman Sachs and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Oppenheimer Gold
The main advantage of trading using opposite Goldman Sachs and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.| Goldman Sachs vs. Columbia Vertible Securities | Goldman Sachs vs. Lord Abbett Vertible | Goldman Sachs vs. Harbor Vertible Securities | Goldman Sachs vs. Absolute Convertible Arbitrage |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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