Correlation Between Gmo Resources and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Gmo Resources 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 Gmo Resources and Oppenheimer Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Resources and Oppenheimer Main Street, you can compare the effects of market volatilities on Gmo Resources 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 Gmo Resources with a short position of Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Resources and Oppenheimer Main.
Diversification Opportunities for Gmo Resources and Oppenheimer Main
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gmo and Oppenheimer is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Resources 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 Gmo Resources 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 Gmo Resources 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 Gmo Resources i.e., Gmo Resources and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Gmo Resources and Oppenheimer Main
Assuming the 90 days horizon Gmo Resources is expected to under-perform the Oppenheimer Main. But the mutual fund apears to be less risky and, when comparing its historical volatility, Gmo Resources is 1.18 times less risky than Oppenheimer Main. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Oppenheimer Main Street is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,328 in Oppenheimer Main Street on September 3, 2024 and sell it today you would earn a total of 223.00 from holding Oppenheimer Main Street or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Resources vs. Oppenheimer Main Street
Performance |
| Timeline |
| Gmo Resources |
| Oppenheimer Main Street |
Gmo Resources and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Resources and Oppenheimer Main
The main advantage of trading using opposite Gmo Resources and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Resources 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.| Gmo Resources vs. Commonwealth Global Fund | Gmo Resources vs. Qs Growth Fund | Gmo Resources vs. Small Cap Stock | Gmo Resources vs. Growth Strategy Fund |
| Oppenheimer Main vs. Gmo Resources | Oppenheimer Main vs. Hennessy Bp Energy | Oppenheimer Main vs. Invesco Energy Fund | Oppenheimer Main vs. Icon Natural Resources |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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