Correlation Between Oppenheimer Gold and Lifex Income
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Lifex Income 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 Lifex Income 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 Lifex Income, you can compare the effects of market volatilities on Oppenheimer Gold and Lifex Income 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 Lifex Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Lifex Income.
Diversification Opportunities for Oppenheimer Gold and Lifex Income
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oppenheimer and Lifex is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Lifex Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifex 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 Lifex Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifex Income has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Lifex Income go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Lifex Income
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 3.83 times more return on investment than Lifex Income. However, Oppenheimer Gold is 3.83 times more volatile than Lifex Income. It trades about 0.05 of its potential returns per unit of risk. Lifex Income is currently generating about 0.14 per unit of risk. If you would invest 2,300 in Oppenheimer Gold Special on September 1, 2024 and sell it today you would earn a total of 214.00 from holding Oppenheimer Gold Special or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. Lifex Income
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Lifex Income |
Oppenheimer Gold and Lifex Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Lifex Income
The main advantage of trading using opposite Oppenheimer Gold and Lifex Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Lifex Income 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 Lifex Income will offset losses from the drop in Lifex Income's long position.| Oppenheimer Gold vs. Lgm Risk Managed | Oppenheimer Gold vs. Aquila Three Peaks | Oppenheimer Gold vs. Western Asset High | Oppenheimer Gold vs. Legg Mason Partners |
| Lifex Income vs. Short Precious Metals | Lifex Income vs. Europac Gold Fund | Lifex Income vs. International Investors Gold | Lifex Income vs. Oppenheimer Gold Special |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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