Correlation Between American Beacon and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both American Beacon 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 American Beacon and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Shapiro and Oppenheimer Gold Special, you can compare the effects of market volatilities on American Beacon 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 American Beacon with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Oppenheimer Gold.
Diversification Opportunities for American Beacon and Oppenheimer Gold
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Oppenheimer is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Shapiro 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 American Beacon 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 American Beacon Shapiro 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 American Beacon i.e., American Beacon and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between American Beacon and Oppenheimer Gold
Assuming the 90 days horizon American Beacon Shapiro is expected to under-perform the Oppenheimer Gold. But the mutual fund apears to be less risky and, when comparing its historical volatility, American Beacon Shapiro is 2.13 times less risky than Oppenheimer Gold. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Oppenheimer Gold Special is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,362 in Oppenheimer Gold Special on September 14, 2024 and sell it today you would earn a total of 163.00 from holding Oppenheimer Gold Special or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Beacon Shapiro vs. Oppenheimer Gold Special
Performance |
| Timeline |
| American Beacon Shapiro |
| Oppenheimer Gold Special |
American Beacon and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Oppenheimer Gold
The main advantage of trading using opposite American Beacon and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon 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.| American Beacon vs. American Beacon International | American Beacon vs. American Beacon Large | American Beacon vs. Fidelity Low Priced Stock | American Beacon vs. Europacific Growth Fund |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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