Correlation Between Precious Metals and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Precious Metals 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 Precious Metals and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Precious Metals Fund and Oppenheimer Gold Special, you can compare the effects of market volatilities on Precious Metals 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 Precious Metals with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Precious Metals and Oppenheimer Gold.
Diversification Opportunities for Precious Metals and Oppenheimer Gold
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Precious and Oppenheimer is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Precious Metals 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 Precious Metals 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 Precious Metals 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 Precious Metals i.e., Precious Metals and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Precious Metals and Oppenheimer Gold
Assuming the 90 days horizon Precious Metals is expected to generate 1.21 times less return on investment than Oppenheimer Gold. In addition to that, Precious Metals is 1.14 times more volatile than Oppenheimer Gold Special. It trades about 0.03 of its total potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.04 per unit of volatility. If you would invest 2,558 in Oppenheimer Gold Special on November 8, 2024 and sell it today you would earn a total of 101.00 from holding Oppenheimer Gold Special or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Precious Metals Fund vs. Oppenheimer Gold Special
Performance |
| Timeline |
| Precious Metals |
| Oppenheimer Gold Special |
Precious Metals and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Precious Metals and Oppenheimer Gold
The main advantage of trading using opposite Precious Metals and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Precious Metals 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.| Precious Metals vs. Energy Fund Investor | Precious Metals vs. Energy Services Fund | Precious Metals vs. Basic Materials Fund | Precious Metals vs. Health Care Fund |
| Oppenheimer Gold vs. The Hartford High | Oppenheimer Gold vs. The Hartford Floating | Oppenheimer Gold vs. Chartwell Short Duration | Oppenheimer Gold vs. Artisan High Income |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stocks Directory Find actively traded stocks across global markets |