Correlation Between Hennessy Technology and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Hennessy Technology 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 Hennessy Technology and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Technology Fund and Oppenheimer Gold Special, you can compare the effects of market volatilities on Hennessy Technology 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 Hennessy Technology with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy Technology and Oppenheimer Gold.
Diversification Opportunities for Hennessy Technology and Oppenheimer Gold
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hennessy and Oppenheimer is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Technology Fund 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 Hennessy Technology 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 Hennessy Technology Fund 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 Hennessy Technology i.e., Hennessy Technology and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Hennessy Technology and Oppenheimer Gold
Assuming the 90 days horizon Hennessy Technology is expected to generate 1.24 times less return on investment than Oppenheimer Gold. But when comparing it to its historical volatility, Hennessy Technology Fund is 1.07 times less risky than Oppenheimer Gold. It trades about 0.23 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,350 in Oppenheimer Gold Special on November 3, 2024 and sell it today you would earn a total of 164.00 from holding Oppenheimer Gold Special or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Technology Fund vs. Oppenheimer Gold Special
Performance |
| Timeline |
| Hennessy Technology |
| Oppenheimer Gold Special |
Hennessy Technology and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy Technology and Oppenheimer Gold
The main advantage of trading using opposite Hennessy Technology and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy Technology 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.| Hennessy Technology vs. Black Oak Emerging | Hennessy Technology vs. Hennessy Large Cap | Hennessy Technology vs. Hennessy Japan Fund | Hennessy Technology vs. Hennessy Small Cap |
| Oppenheimer Gold vs. Goldman Sachs Clean | Oppenheimer Gold vs. Gabelli Gold Fund | Oppenheimer Gold vs. Goldman Sachs Mid | Oppenheimer Gold vs. Precious Metals And |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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