Correlation Between George Putnam and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both George Putnam and Oppenheimer 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 George Putnam and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between George Putnam Fund and Oppenheimer Gold Special, you can compare the effects of market volatilities on George Putnam and Oppenheimer 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 George Putnam with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Oppenheimer Gold.
Diversification Opportunities for George Putnam and Oppenheimer Gold
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between George and Oppenheimer is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding George Putnam Fund and Oppenheimer Gold Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Gold Special and George Putnam 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 George Putnam Fund are associated (or correlated) with Oppenheimer Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Gold Special has no effect on the direction of George Putnam i.e., George Putnam and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between George Putnam and Oppenheimer Gold
Assuming the 90 days horizon George Putnam Fund is expected to generate 0.44 times more return on investment than Oppenheimer Gold. However, George Putnam Fund is 2.27 times less risky than Oppenheimer Gold. It trades about -0.07 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about -0.17 per unit of risk. If you would invest 2,634 in George Putnam Fund on August 29, 2024 and sell it today you would lose (40.00) from holding George Putnam Fund or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
George Putnam Fund vs. Oppenheimer Gold Special
Performance |
| Timeline |
| George Putnam |
| Oppenheimer Gold Special |
George Putnam and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Oppenheimer Gold
The main advantage of trading using opposite George Putnam and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam position performs unexpectedly, Oppenheimer 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 Oppenheimer Gold will offset losses from the drop in Oppenheimer Gold's long position.| George Putnam vs. Oppenheimer Gold Special | George Putnam vs. Europac Gold Fund | George Putnam vs. Short Precious Metals | George Putnam vs. James Balanced Golden |
| Oppenheimer Gold vs. First Eagle Gold | Oppenheimer Gold vs. Aquagold International | Oppenheimer Gold vs. Morningstar Unconstrained Allocation | Oppenheimer Gold vs. Thrivent High Yield |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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