Correlation Between Oppenheimer Gold and Capital Management
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Capital Management 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 Oppenheimer Gold and Capital Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Gold Special and Capital Management Mid Cap, you can compare the effects of market volatilities on Oppenheimer Gold and Capital Management 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 Oppenheimer Gold with a short position of Capital Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Capital Management.
Diversification Opportunities for Oppenheimer Gold and Capital Management
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oppenheimer and Capital is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Capital Management Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Management Mid and Oppenheimer Gold 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 Oppenheimer Gold Special are associated (or correlated) with Capital Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Management Mid has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Capital Management go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Capital Management
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 1.48 times more return on investment than Capital Management. However, Oppenheimer Gold is 1.48 times more volatile than Capital Management Mid Cap. It trades about 0.32 of its potential returns per unit of risk. Capital Management Mid Cap is currently generating about -0.08 per unit of risk. If you would invest 2,307 in Oppenheimer Gold Special on October 25, 2024 and sell it today you would earn a total of 178.00 from holding Oppenheimer Gold Special or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. Capital Management Mid Cap
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Capital Management Mid |
Oppenheimer Gold and Capital Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Capital Management
The main advantage of trading using opposite Oppenheimer Gold and Capital Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Capital Management 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 Capital Management will offset losses from the drop in Capital Management's long position.| Oppenheimer Gold vs. Fdzbpx | Oppenheimer Gold vs. Flakqx | Oppenheimer Gold vs. Fabwx | Oppenheimer Gold vs. Arrow Managed Futures |
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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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