Correlation Between Oppenheimer Gold and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Stone Harbor 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 Stone Harbor 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 Stone Harbor Local, you can compare the effects of market volatilities on Oppenheimer Gold and Stone Harbor 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 Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Stone Harbor.
Diversification Opportunities for Oppenheimer Gold and Stone Harbor
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oppenheimer and Stone is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Stone Harbor Local in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Local 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 Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor Local has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Stone Harbor go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Stone Harbor
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 3.58 times more return on investment than Stone Harbor. However, Oppenheimer Gold is 3.58 times more volatile than Stone Harbor Local. It trades about 0.04 of its potential returns per unit of risk. Stone Harbor Local is currently generating about 0.04 per unit of risk. If you would invest 1,976 in Oppenheimer Gold Special on September 14, 2024 and sell it today you would earn a total of 549.00 from holding Oppenheimer Gold Special or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. Stone Harbor Local
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Stone Harbor Local |
Oppenheimer Gold and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Stone Harbor
The main advantage of trading using opposite Oppenheimer Gold and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Stone Harbor 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 Stone Harbor will offset losses from the drop in Stone Harbor's long position.| Oppenheimer Gold vs. Touchstone Premium Yield | Oppenheimer Gold vs. Ambrus Core Bond | Oppenheimer Gold vs. Ab Global Bond | Oppenheimer Gold vs. Bbh Intermediate Municipal |
| Stone Harbor vs. Stone Harbor Emerging | Stone Harbor vs. Stone Harbor Emerging | Stone Harbor vs. Investment Of America | Stone Harbor vs. Environment And Alternative |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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