Correlation Between Fisher Small and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Fisher Small 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 Fisher Small and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Small Cap and Oppenheimer Gold Spec, you can compare the effects of market volatilities on Fisher Small 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 Fisher Small with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Small and Oppenheimer Gold.
Diversification Opportunities for Fisher Small and Oppenheimer Gold
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fisher and Oppenheimer is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and Oppenheimer Gold Spec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Gold Spec and Fisher Small 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 Fisher Small Cap 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 Spec has no effect on the direction of Fisher Small i.e., Fisher Small and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Fisher Small and Oppenheimer Gold
Assuming the 90 days horizon Fisher Small Cap is expected to generate 0.84 times more return on investment than Oppenheimer Gold. However, Fisher Small Cap is 1.2 times less risky than Oppenheimer Gold. It trades about 0.08 of its potential returns per unit of risk. Oppenheimer Gold Spec is currently generating about 0.06 per unit of risk. If you would invest 1,177 in Fisher Small Cap on September 2, 2024 and sell it today you would earn a total of 176.00 from holding Fisher Small Cap or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Small Cap vs. Oppenheimer Gold Spec
Performance |
| Timeline |
| Fisher Small Cap |
| Oppenheimer Gold Spec |
Fisher Small and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Small and Oppenheimer Gold
The main advantage of trading using opposite Fisher Small and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Small 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.| Fisher Small vs. Fisher Large Cap | Fisher Small vs. Fisher All Foreign | Fisher Small vs. Tactical Multi Purpose Fund | Fisher Small vs. Fisher Stock |
| Oppenheimer Gold vs. Invesco Municipal Income | Oppenheimer Gold vs. Invesco Municipal Income | Oppenheimer Gold vs. Invesco Municipal Income | Oppenheimer Gold vs. Oppenheimer Rising Dividends |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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