Correlation Between Oppenheimer Gold and Franklin Gold
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Franklin Gold 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 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Gold Spec and Franklin Gold Precious, you can compare the effects of market volatilities on Oppenheimer Gold and Franklin Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Franklin Gold.
Diversification Opportunities for Oppenheimer Gold and Franklin Gold
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Franklin is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Spec and Franklin Gold Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Gold Precious 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 Spec are associated (or correlated) with Franklin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Gold Precious has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Franklin Gold go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Franklin Gold
Assuming the 90 days horizon Oppenheimer Gold is expected to generate 1.01 times less return on investment than Franklin Gold. In addition to that, Oppenheimer Gold is 1.01 times more volatile than Franklin Gold Precious. It trades about 0.04 of its total potential returns per unit of risk. Franklin Gold Precious is currently generating about 0.04 per unit of volatility. If you would invest 1,417 in Franklin Gold Precious on August 28, 2024 and sell it today you would earn a total of 427.00 from holding Franklin Gold Precious or generate 30.13% 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 Spec vs. Franklin Gold Precious
Performance |
| Timeline |
| Oppenheimer Gold Spec |
| Franklin Gold Precious |
Oppenheimer Gold and Franklin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Franklin Gold
The main advantage of trading using opposite Oppenheimer Gold and Franklin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Franklin Gold 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 Gold will offset losses from the drop in Franklin Gold's long position.| Oppenheimer Gold vs. Invesco Municipal Income | Oppenheimer Gold vs. Invesco Municipal Income | Oppenheimer Gold vs. Invesco Municipal Income | Oppenheimer Gold vs. Oppenheimer Rising Dividends |
| Franklin Gold vs. Ab E Opportunities | Franklin Gold vs. Eic Value Fund | Franklin Gold vs. T Rowe Price | Franklin Gold vs. Archer Balanced 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |