Correlation Between Oppenheimer Gold and First Investors
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and First Investors 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 First Investors 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 First Investors Growth, you can compare the effects of market volatilities on Oppenheimer Gold and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and First Investors.
Diversification Opportunities for Oppenheimer Gold and First Investors
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oppenheimer and First is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and First Investors Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Growth 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 First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Growth has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and First Investors go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and First Investors
Assuming the 90 days horizon Oppenheimer Gold Special is expected to under-perform the First Investors. In addition to that, Oppenheimer Gold is 2.15 times more volatile than First Investors Growth. It trades about -0.13 of its total potential returns per unit of risk. First Investors Growth is currently generating about 0.34 per unit of volatility. If you would invest 1,603 in First Investors Growth on September 4, 2024 and sell it today you would earn a total of 108.00 from holding First Investors Growth or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. First Investors Growth
Performance |
| Timeline |
| Oppenheimer Gold Special |
| First Investors Growth |
Oppenheimer Gold and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and First Investors
The main advantage of trading using opposite Oppenheimer Gold and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Oppenheimer Gold vs. Fa 529 Aggressive | Oppenheimer Gold vs. Rbb Fund | Oppenheimer Gold vs. Qs Large Cap | Oppenheimer Gold vs. Abr 7525 Volatility |
| First Investors vs. Optimum Small Mid Cap | First Investors vs. Optimum Small Mid Cap | First Investors vs. Ivy Apollo Multi Asset | First Investors vs. Optimum Fixed Income |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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