Correlation Between Gamco Natural and Oppenheimer Strategic
Can any of the company-specific risk be diversified away by investing in both Gamco Natural and Oppenheimer Strategic 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 Natural and Oppenheimer Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Natural Resources and Oppenheimer Strategic Income, you can compare the effects of market volatilities on Gamco Natural and Oppenheimer Strategic 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 Natural with a short position of Oppenheimer Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Natural and Oppenheimer Strategic.
Diversification Opportunities for Gamco Natural and Oppenheimer Strategic
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gamco and Oppenheimer is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Natural Resources and Oppenheimer Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Strategic and Gamco Natural 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 Natural Resources are associated (or correlated) with Oppenheimer Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Strategic has no effect on the direction of Gamco Natural i.e., Gamco Natural and Oppenheimer Strategic go up and down completely randomly.
Pair Corralation between Gamco Natural and Oppenheimer Strategic
Assuming the 90 days horizon Gamco Natural is expected to generate 1.06 times less return on investment than Oppenheimer Strategic. In addition to that, Gamco Natural is 2.06 times more volatile than Oppenheimer Strategic Income. It trades about 0.03 of its total potential returns per unit of risk. Oppenheimer Strategic Income is currently generating about 0.06 per unit of volatility. If you would invest 278.00 in Oppenheimer Strategic Income on September 12, 2024 and sell it today you would earn a total of 32.00 from holding Oppenheimer Strategic Income or generate 11.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Natural Resources vs. Oppenheimer Strategic Income
Performance |
| Timeline |
| Gamco Natural Resources |
| Oppenheimer Strategic |
Gamco Natural and Oppenheimer Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Natural and Oppenheimer Strategic
The main advantage of trading using opposite Gamco Natural and Oppenheimer Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Natural position performs unexpectedly, Oppenheimer Strategic 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 Strategic will offset losses from the drop in Oppenheimer Strategic's long position.| Gamco Natural vs. Avantis Large Cap | Gamco Natural vs. American Mutual Fund | Gamco Natural vs. Jhancock Disciplined Value | Gamco Natural vs. Pace Large Value |
| Oppenheimer Strategic vs. Gamco Natural Resources | Oppenheimer Strategic vs. Jennison Natural Resources | Oppenheimer Strategic vs. Franklin Natural Resources | Oppenheimer Strategic vs. World Energy Fund |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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