Correlation Between Oppenheimer Gold and Precious Metals
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Precious Metals 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 Precious Metals 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 Precious Metals Fund, you can compare the effects of market volatilities on Oppenheimer Gold and Precious Metals 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 Precious Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Precious Metals.
Diversification Opportunities for Oppenheimer Gold and Precious Metals
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Precious is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Precious Metals Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precious Metals 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 Precious Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precious Metals has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Precious Metals go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Precious Metals
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 0.88 times more return on investment than Precious Metals. However, Oppenheimer Gold Special is 1.14 times less risky than Precious Metals. It trades about 0.04 of its potential returns per unit of risk. Precious Metals Fund is currently generating about 0.03 per unit of risk. If you would invest 2,558 in Oppenheimer Gold Special on November 8, 2024 and sell it today you would earn a total of 101.00 from holding Oppenheimer Gold Special or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. Precious Metals Fund
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Precious Metals |
Oppenheimer Gold and Precious Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Precious Metals
The main advantage of trading using opposite Oppenheimer Gold and Precious Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Precious Metals 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 Precious Metals will offset losses from the drop in Precious Metals' long position.| Oppenheimer Gold vs. The Hartford High | Oppenheimer Gold vs. The Hartford Floating | Oppenheimer Gold vs. Chartwell Short Duration | Oppenheimer Gold vs. Artisan High Income |
| Precious Metals vs. Energy Fund Investor | Precious Metals vs. Energy Services Fund | Precious Metals vs. Basic Materials Fund | Precious Metals vs. Health Care Fund |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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