Correlation Between Jpmorgan Smartretirement* and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Smartretirement* 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 Jpmorgan Smartretirement* and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Smartretirement Blend and Oppenheimer Gold Special, you can compare the effects of market volatilities on Jpmorgan Smartretirement* 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 Jpmorgan Smartretirement* with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Smartretirement* and Oppenheimer Gold.
Diversification Opportunities for Jpmorgan Smartretirement* and Oppenheimer Gold
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and Oppenheimer is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement Blend 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 Jpmorgan Smartretirement* 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 Jpmorgan Smartretirement Blend 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 Jpmorgan Smartretirement* i.e., Jpmorgan Smartretirement* and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Jpmorgan Smartretirement* and Oppenheimer Gold
Assuming the 90 days horizon Jpmorgan Smartretirement* is expected to generate 1.61 times less return on investment than Oppenheimer Gold. But when comparing it to its historical volatility, Jpmorgan Smartretirement Blend is 2.98 times less risky than Oppenheimer Gold. It trades about 0.1 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,210 in Oppenheimer Gold Special on September 3, 2024 and sell it today you would earn a total of 304.00 from holding Oppenheimer Gold Special or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Smartretirement Blend vs. Oppenheimer Gold Special
Performance |
| Timeline |
| Jpmorgan Smartretirement* |
| Oppenheimer Gold Special |
Jpmorgan Smartretirement* and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Smartretirement* and Oppenheimer Gold
The main advantage of trading using opposite Jpmorgan Smartretirement* and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Smartretirement* 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.| Jpmorgan Smartretirement* vs. Jpmorgan Trust I | Jpmorgan Smartretirement* vs. Jpmorgan Small Cap | Jpmorgan Smartretirement* vs. Jpmorgan Growth Advantage | Jpmorgan Smartretirement* vs. Jpmorgan Mid Cap |
| Oppenheimer Gold vs. Dreyfus Technology Growth | Oppenheimer Gold vs. Global Technology Portfolio | Oppenheimer Gold vs. Columbia Global Technology | Oppenheimer Gold vs. Blackrock Science Technology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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