Correlation Between Oppenheimer Gold and Pimco Global
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Pimco Global 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 Global 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 Global Multi Asset, you can compare the effects of market volatilities on Oppenheimer Gold and Pimco Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Pimco Global.
Diversification Opportunities for Oppenheimer Gold and Pimco Global
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Pimco is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Pimco Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Global Multi 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Global Multi has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Pimco Global go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Pimco Global
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 3.54 times more return on investment than Pimco Global. However, Oppenheimer Gold is 3.54 times more volatile than Pimco Global Multi Asset. It trades about 0.05 of its potential returns per unit of risk. Pimco Global Multi Asset is currently generating about 0.1 per unit of risk. If you would invest 2,256 in Oppenheimer Gold Special on September 3, 2024 and sell it today you would earn a total of 234.00 from holding Oppenheimer Gold Special or generate 10.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. Pimco Global Multi Asset
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Pimco Global Multi |
Oppenheimer Gold and Pimco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Pimco Global
The main advantage of trading using opposite Oppenheimer Gold and Pimco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Pimco Global 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 Global will offset losses from the drop in Pimco Global's long position.| Oppenheimer Gold vs. Dreyfus Technology Growth | Oppenheimer Gold vs. Global Technology Portfolio | Oppenheimer Gold vs. Columbia Global Technology | Oppenheimer Gold vs. Blackrock Science Technology |
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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