Correlation Between Oppenheimer Gold and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Ashmore Emerging 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 Ashmore Emerging 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 Ashmore Emerging Markets, you can compare the effects of market volatilities on Oppenheimer Gold and Ashmore Emerging 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 Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Ashmore Emerging.
Diversification Opportunities for Oppenheimer Gold and Ashmore Emerging
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oppenheimer and Ashmore is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets 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 Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Ashmore Emerging
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 17.21 times more return on investment than Ashmore Emerging. However, Oppenheimer Gold is 17.21 times more volatile than Ashmore Emerging Markets. It trades about 0.27 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.15 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Ashmore Emerging Markets |
Oppenheimer Gold and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Ashmore Emerging
The main advantage of trading using opposite Oppenheimer Gold and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Oppenheimer Gold vs. Goldman Sachs Clean | Oppenheimer Gold vs. Gabelli Gold Fund | Oppenheimer Gold vs. Goldman Sachs Mid | Oppenheimer Gold vs. Precious Metals And |
| Ashmore Emerging vs. Great West Loomis Sayles | Ashmore Emerging vs. Ultrasmall Cap Profund Ultrasmall Cap | Ashmore Emerging vs. Small Cap Value Fund | Ashmore Emerging vs. William Blair Small |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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