Correlation Between Strategic Asset and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Strategic Asset 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 Strategic Asset and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Asset Management and Oppenheimer Gold Special, you can compare the effects of market volatilities on Strategic Asset 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 Strategic Asset with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Asset and Oppenheimer Gold.
Diversification Opportunities for Strategic Asset and Oppenheimer Gold
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Strategic and Oppenheimer is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Asset Management 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 Strategic Asset 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 Strategic Asset Management 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 Strategic Asset i.e., Strategic Asset and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Strategic Asset and Oppenheimer Gold
Assuming the 90 days horizon Strategic Asset is expected to generate 1.43 times less return on investment than Oppenheimer Gold. But when comparing it to its historical volatility, Strategic Asset Management is 2.6 times less risky than Oppenheimer Gold. It trades about 0.14 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,832 in Oppenheimer Gold Special on September 14, 2024 and sell it today you would earn a total of 693.00 from holding Oppenheimer Gold Special or generate 37.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Asset Management vs. Oppenheimer Gold Special
Performance |
| Timeline |
| Strategic Asset Mana |
| Oppenheimer Gold Special |
Strategic Asset and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Asset and Oppenheimer Gold
The main advantage of trading using opposite Strategic Asset and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Asset 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.| Strategic Asset vs. Oppenheimer Gold Special | Strategic Asset vs. Sprott Gold Equity | Strategic Asset vs. Global Gold Fund | Strategic Asset vs. Precious Metals And |
| Oppenheimer Gold vs. Touchstone Premium Yield | Oppenheimer Gold vs. Ambrus Core Bond | Oppenheimer Gold vs. Ab Global Bond | Oppenheimer Gold vs. Bbh Intermediate Municipal |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |