Correlation Between Amg Managers and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Montag and Oppenheimer Gold Special, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Oppenheimer Gold.
Diversification Opportunities for Amg Managers and Oppenheimer Gold
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amg and Oppenheimer is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Montag 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 Amg Managers 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 Amg Managers Montag 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 Amg Managers i.e., Amg Managers and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Amg Managers and Oppenheimer Gold
Assuming the 90 days horizon Amg Managers Montag is expected to generate 0.66 times more return on investment than Oppenheimer Gold. However, Amg Managers Montag is 1.52 times less risky than Oppenheimer Gold. It trades about 0.06 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.04 per unit of risk. If you would invest 1,056 in Amg Managers Montag on August 30, 2024 and sell it today you would earn a total of 348.00 from holding Amg Managers Montag or generate 32.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Montag vs. Oppenheimer Gold Special
Performance |
| Timeline |
| Amg Managers Montag |
| Oppenheimer Gold Special |
Amg Managers and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Oppenheimer Gold
The main advantage of trading using opposite Amg Managers and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.| Amg Managers vs. Growth Fund Of | Amg Managers vs. HUMANA INC | Amg Managers vs. Aquagold International | Amg Managers vs. Barloworld Ltd ADR |
| Oppenheimer Gold vs. First Eagle Gold | Oppenheimer Gold vs. Aquagold International | Oppenheimer Gold vs. Morningstar Unconstrained Allocation | Oppenheimer Gold vs. Thrivent High Yield |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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