Correlation Between Oppenheimer Gold and Pimco International
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Pimco International 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 Pimco International 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 Pimco International Bond, you can compare the effects of market volatilities on Oppenheimer Gold and Pimco International 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 Pimco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Pimco International.
Diversification Opportunities for Oppenheimer Gold and Pimco International
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oppenheimer and Pimco is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Pimco International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco International Bond 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 Pimco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco International Bond has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Pimco International go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Pimco International
Assuming the 90 days horizon Oppenheimer Gold Special is expected to under-perform the Pimco International. In addition to that, Oppenheimer Gold is 4.02 times more volatile than Pimco International Bond. It trades about -0.13 of its total potential returns per unit of risk. Pimco International Bond is currently generating about -0.01 per unit of volatility. If you would invest 759.00 in Pimco International Bond on September 1, 2024 and sell it today you would lose (1.00) from holding Pimco International Bond or give up 0.13% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Oppenheimer Gold Special vs. Pimco International Bond
Performance |
Timeline |
Oppenheimer Gold Special |
Pimco International Bond |
Oppenheimer Gold and Pimco International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oppenheimer Gold and Pimco International
The main advantage of trading using opposite Oppenheimer Gold and Pimco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Pimco International 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 Pimco International will offset losses from the drop in Pimco International'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 |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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