Correlation Between Stringer Growth and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Stringer Growth 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 Stringer Growth and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stringer Growth Fund and Oppenheimer Gold Spec, you can compare the effects of market volatilities on Stringer Growth 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 Stringer Growth with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stringer Growth and Oppenheimer Gold.
Diversification Opportunities for Stringer Growth and Oppenheimer Gold
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stringer and Oppenheimer is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Stringer Growth Fund and Oppenheimer Gold Spec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Gold Spec and Stringer Growth 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 Stringer Growth 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 Spec has no effect on the direction of Stringer Growth i.e., Stringer Growth and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Stringer Growth and Oppenheimer Gold
Assuming the 90 days horizon Stringer Growth is expected to generate 3.4 times less return on investment than Oppenheimer Gold. But when comparing it to its historical volatility, Stringer Growth Fund is 1.86 times less risky than Oppenheimer Gold. It trades about 0.22 of its potential returns per unit of risk. Oppenheimer Gold Spec is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 2,561 in Oppenheimer Gold Spec on November 9, 2024 and sell it today you would earn a total of 276.00 from holding Oppenheimer Gold Spec or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stringer Growth Fund vs. Oppenheimer Gold Spec
Performance |
| Timeline |
| Stringer Growth |
| Oppenheimer Gold Spec |
Stringer Growth and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stringer Growth and Oppenheimer Gold
The main advantage of trading using opposite Stringer Growth and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stringer Growth 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.| Stringer Growth vs. Transamerica Mlp Energy | Stringer Growth vs. Salient Mlp Energy | Stringer Growth vs. Oil Gas Ultrasector | Stringer Growth vs. Transamerica Mlp Energy |
| Oppenheimer Gold vs. Mutual Of America | Oppenheimer Gold vs. Boston Partners Small | Oppenheimer Gold vs. Mid Cap Growth Profund | Oppenheimer Gold vs. Applied Finance Explorer |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |