Correlation Between Oppenheimer Gold and Meridian Equity
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Meridian 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 Meridian 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 Meridian Equity Income, you can compare the effects of market volatilities on Oppenheimer Gold and Meridian 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 Meridian Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Meridian Equity.
Diversification Opportunities for Oppenheimer Gold and Meridian Equity
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oppenheimer and Meridian is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Meridian Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian 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 Meridian Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Equity Income has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Meridian Equity go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Meridian Equity
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 2.88 times more return on investment than Meridian Equity. However, Oppenheimer Gold is 2.88 times more volatile than Meridian Equity Income. It trades about 0.04 of its potential returns per unit of risk. Meridian Equity Income is currently generating about 0.09 per unit of risk. If you would invest 2,124 in Oppenheimer Gold Special on September 12, 2024 and sell it today you would earn a total of 431.00 from holding Oppenheimer Gold Special or generate 20.29% 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. Meridian Equity Income
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Meridian Equity Income |
Oppenheimer Gold and Meridian Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Meridian Equity
The main advantage of trading using opposite Oppenheimer Gold and Meridian Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Meridian 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 Meridian Equity will offset losses from the drop in Meridian Equity's long position.| Oppenheimer Gold vs. First Eagle Gold | Oppenheimer Gold vs. HUMANA INC | Oppenheimer Gold vs. Barloworld Ltd ADR | Oppenheimer Gold vs. Morningstar Unconstrained Allocation |
| Meridian Equity vs. Gold And Precious | Meridian Equity vs. Gamco Global Gold | Meridian Equity vs. Oppenheimer Gold Special | Meridian Equity vs. International Investors Gold |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |