Correlation Between Oppenheimer Gold and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Franklin Mutual 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 Franklin Mutual 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 Franklin Mutual European, you can compare the effects of market volatilities on Oppenheimer Gold and Franklin Mutual 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 Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Franklin Mutual.
Diversification Opportunities for Oppenheimer Gold and Franklin Mutual
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Franklin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Franklin Mutual European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual European 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 Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual European has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Franklin Mutual go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Franklin Mutual
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 1.87 times more return on investment than Franklin Mutual. However, Oppenheimer Gold is 1.87 times more volatile than Franklin Mutual European. It trades about 0.34 of its potential returns per unit of risk. Franklin Mutual European is currently generating about 0.45 per unit of risk. If you would invest 2,273 in Oppenheimer Gold Special on November 1, 2024 and sell it today you would earn a total of 203.00 from holding Oppenheimer Gold Special or generate 8.93% 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. Franklin Mutual European
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Franklin Mutual European |
Oppenheimer Gold and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Franklin Mutual
The main advantage of trading using opposite Oppenheimer Gold and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Franklin Mutual 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 Franklin Mutual will offset losses from the drop in Franklin Mutual's long position.| Oppenheimer Gold vs. Dodge Cox Stock | Oppenheimer Gold vs. Tax Managed Large Cap | Oppenheimer Gold vs. Touchstone Large Cap | Oppenheimer Gold vs. Touchstone Large Cap |
| Franklin Mutual vs. Wells Fargo Advantage | Franklin Mutual vs. Vy Goldman Sachs | Franklin Mutual vs. Gabelli Gold Fund | Franklin Mutual vs. Oppenheimer Gold Special |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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