Correlation Between Specialized Technology and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Specialized Technology 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 Specialized Technology and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Specialized Technology Fund and Oppenheimer Gold Special, you can compare the effects of market volatilities on Specialized Technology 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 Specialized Technology with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Specialized Technology and Oppenheimer Gold.
Diversification Opportunities for Specialized Technology and Oppenheimer Gold
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Specialized and Oppenheimer is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Specialized Technology 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 Specialized Technology 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 Specialized Technology 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 Specialized Technology i.e., Specialized Technology and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Specialized Technology and Oppenheimer Gold
Assuming the 90 days horizon Specialized Technology is expected to generate 2.68 times less return on investment than Oppenheimer Gold. But when comparing it to its historical volatility, Specialized Technology Fund is 1.28 times less risky than Oppenheimer Gold. It trades about 0.12 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,307 in Oppenheimer Gold Special on October 23, 2024 and sell it today you would earn a total of 134.00 from holding Oppenheimer Gold Special or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Specialized Technology Fund vs. Oppenheimer Gold Special
Performance |
| Timeline |
| Specialized Technology |
| Oppenheimer Gold Special |
Specialized Technology and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Specialized Technology and Oppenheimer Gold
The main advantage of trading using opposite Specialized Technology and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Specialized Technology 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.| Specialized Technology vs. Deutsche Health And | Specialized Technology vs. Baillie Gifford Health | Specialized Technology vs. Blackrock Health Sciences | Specialized Technology vs. Hartford Healthcare Hls |
| Oppenheimer Gold vs. Hennessy Technology Fund | Oppenheimer Gold vs. Towpath Technology | Oppenheimer Gold vs. Vanguard Information Technology | Oppenheimer Gold vs. Goldman Sachs Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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