Correlation Between Oppenheimer Gold and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Templeton 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 Templeton 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 Templeton Global Balanced, you can compare the effects of market volatilities on Oppenheimer Gold and Templeton 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 Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Templeton Global.
Diversification Opportunities for Oppenheimer Gold and Templeton Global
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Templeton is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Templeton Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Balanced 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 Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Balanced has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Templeton Global go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Templeton Global
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 2.32 times more return on investment than Templeton Global. However, Oppenheimer Gold is 2.32 times more volatile than Templeton Global Balanced. It trades about 0.34 of its potential returns per unit of risk. Templeton Global Balanced is currently generating about 0.38 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. Templeton Global Balanced
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Templeton Global Balanced |
Oppenheimer Gold and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Templeton Global
The main advantage of trading using opposite Oppenheimer Gold and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Templeton 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 Templeton Global will offset losses from the drop in Templeton Global'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 |
| Templeton Global vs. Oppenheimer Gold Special | Templeton Global vs. Franklin Gold Precious | Templeton Global vs. First Eagle Gold | Templeton Global vs. Fidelity Advisor Gold |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |