Correlation Between Oppenheimer Gold and Icon Equity
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Icon Equity 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 Icon Equity 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 Icon Equity Income, you can compare the effects of market volatilities on Oppenheimer Gold and Icon Equity 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 Icon Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Icon Equity.
Diversification Opportunities for Oppenheimer Gold and Icon Equity
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oppenheimer and ICON is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Icon Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Equity Income 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 Icon Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Equity Income has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Icon Equity go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Icon Equity
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 2.65 times more return on investment than Icon Equity. However, Oppenheimer Gold is 2.65 times more volatile than Icon Equity Income. It trades about 0.04 of its potential returns per unit of risk. Icon Equity Income is currently generating about 0.05 per unit of risk. If you would invest 1,950 in Oppenheimer Gold Special on September 2, 2024 and sell it today you would earn a total of 564.00 from holding Oppenheimer Gold Special or generate 28.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. Icon Equity Income
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Icon Equity Income |
Oppenheimer Gold and Icon Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Icon Equity
The main advantage of trading using opposite Oppenheimer Gold and Icon Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Icon Equity 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 Icon Equity will offset losses from the drop in Icon Equity's long position.| Oppenheimer Gold vs. Abr 7525 Volatility | Oppenheimer Gold vs. Aam Select Income | Oppenheimer Gold vs. Scharf Global Opportunity | Oppenheimer Gold vs. Leggmason Partners Institutional |
| Icon Equity vs. John Hancock Financial | Icon Equity vs. Angel Oak Financial | Icon Equity vs. Royce Global Financial | Icon Equity vs. Davis Financial Fund |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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