Correlation Between Amg Managers and Oppenheimer Gold

Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amg Managers Centersquare and Oppenheimer Gold Special, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Oppenheimer Gold.

Diversification Opportunities for Amg Managers and Oppenheimer Gold

0.73

Correlation Coefficient

Amg Managers  Oppenheimer Gold

Poor diversification

The 3 months correlation between Amg and Oppenheimer is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare 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 Amg Managers 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 Amg Managers Centersquare 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 Amg Managers i.e., Amg Managers and Oppenheimer Gold go up and down completely randomly.

Pair Corralation between Amg Managers and Oppenheimer Gold

Assuming the 90 days horizon Amg Managers is expected to generate 1.32 times less return on investment than Oppenheimer Gold. But when comparing it to its historical volatility, Amg Managers Centersquare is 1.49 times less risky than Oppenheimer Gold. It trades about 0.02 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,183  in Oppenheimer Gold Special on October 13, 2024 and sell it today you would earn a total of  219.00  from holding Oppenheimer Gold Special or generate 10.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

Amg Managers Centersquare  vs.  Oppenheimer Gold Special

Amg Managers Centersquare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amg Managers Centersquare has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Oppenheimer Gold Special

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oppenheimer Gold Special has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Amg Managers and Oppenheimer Gold

The main advantage of trading using opposite Amg Managers and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.

The idea behind Amg Managers Centersquare and Oppenheimer Gold Special pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..