Correlation Between Oppenheimer Gold and State Street
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and State Street 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 State Street 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 State Street Aggregate, you can compare the effects of market volatilities on Oppenheimer Gold and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and State Street.
Diversification Opportunities for Oppenheimer Gold and State Street
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oppenheimer and State is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and State Street Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Aggregate 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Aggregate has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and State Street go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and State Street
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 5.31 times more return on investment than State Street. However, Oppenheimer Gold is 5.31 times more volatile than State Street Aggregate. It trades about 0.06 of its potential returns per unit of risk. State Street Aggregate is currently generating about 0.1 per unit of risk. If you would invest 2,215 in Oppenheimer Gold Special on September 3, 2024 and sell it today you would earn a total of 299.00 from holding Oppenheimer Gold Special or generate 13.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. State Street Aggregate
Performance |
| Timeline |
| Oppenheimer Gold Special |
| State Street Aggregate |
Oppenheimer Gold and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and State Street
The main advantage of trading using opposite Oppenheimer Gold and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street'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 |
| State Street vs. Icon Financial Fund | State Street vs. Royce Global Financial | State Street vs. Davis Financial Fund | State Street vs. Fidelity Advisor Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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