Correlation Between Gamco Global and Oppenheimer Gold
Can any of the company-specific risk be diversified away by investing in both Gamco Global 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 Gamco Global and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Gold and Oppenheimer Gold Special, you can compare the effects of market volatilities on Gamco Global 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 Gamco Global with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Oppenheimer Gold.
Diversification Opportunities for Gamco Global and Oppenheimer Gold
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gamco and Oppenheimer is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Gold 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 Gamco Global 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 Gamco Global Gold 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 Gamco Global i.e., Gamco Global and Oppenheimer Gold go up and down completely randomly.
Pair Corralation between Gamco Global and Oppenheimer Gold
Assuming the 90 days horizon Gamco Global Gold is expected to generate 0.41 times more return on investment than Oppenheimer Gold. However, Gamco Global Gold is 2.41 times less risky than Oppenheimer Gold. It trades about -0.13 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about -0.16 per unit of risk. If you would invest 430.00 in Gamco Global Gold on August 26, 2024 and sell it today you would lose (10.00) from holding Gamco Global Gold or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Global Gold vs. Oppenheimer Gold Special
Performance |
| Timeline |
| Gamco Global Gold |
| Oppenheimer Gold Special |
Gamco Global and Oppenheimer Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Oppenheimer Gold
The main advantage of trading using opposite Gamco Global and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global 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.| Gamco Global vs. Mesirow Financial Small | Gamco Global vs. 1919 Financial Services | Gamco Global vs. Icon Financial Fund | Gamco Global vs. Fidelity Advisor Financial |
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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 Positions Ratings module to 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.
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