Correlation Between Oppenheimer Gold and Pimco International

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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 Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Oppenheimer Gold Special  vs.  Pimco International Bond

 Performance 
       Timeline  
Oppenheimer Gold Special 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Gold Special are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Oppenheimer Gold may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Pimco International Bond 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Pimco International Bond has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Pimco International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.
The idea behind Oppenheimer Gold Special and Pimco International Bond pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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