Correlation Between Oppenheimer Gold and Hood River

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

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

Diversification Opportunities for Oppenheimer Gold and Hood River

-0.63

Correlation Coefficient

Oppenheimer Gold  Hood River

Excellent diversification

The 3 months correlation between Oppenheimer and Hood is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Hood River Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hood River Small and Oppenheimer Gold 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 Oppenheimer Gold Special are associated (or correlated) with Hood River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hood River Small has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Hood River go up and down completely randomly.

Pair Corralation between Oppenheimer Gold and Hood River

Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 0.92 times more return on investment than Hood River. However, Oppenheimer Gold Special is 1.08 times less risky than Hood River. It trades about 0.25 of its potential returns per unit of risk. Hood River Small Cap is currently generating about -0.13 per unit of risk. If you would invest  2,263  in Oppenheimer Gold Special on December 29, 2024 and sell it today you would earn a total of  622.00  from holding Oppenheimer Gold Special or generate 27.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Oppenheimer Gold Special  vs.  Hood River Small Cap

Oppenheimer Gold Special

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Gold Special are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unfluctuating fundamental indicators, Oppenheimer Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Hood River Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hood River Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Oppenheimer Gold and Hood River

The main advantage of trading using opposite Oppenheimer Gold and Hood River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Hood River 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 Hood River will offset losses from the drop in Hood River's long position.

The idea behind Oppenheimer Gold Special and Hood River Small Cap 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.