Correlation Between Oppenheimer Gold and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Cohen Steers 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 Cohen Steers 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 Cohen Steers Real, you can compare the effects of market volatilities on Oppenheimer Gold and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Cohen Steers.
Diversification Opportunities for Oppenheimer Gold and Cohen Steers
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Cohen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Real has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Cohen Steers go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Cohen Steers
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 3.53 times more return on investment than Cohen Steers. However, Oppenheimer Gold is 3.53 times more volatile than Cohen Steers Real. It trades about 0.25 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.2 per unit of risk. If you would invest 2,263 in Oppenheimer Gold Special on December 30, 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 Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Oppenheimer Gold Special vs. Cohen Steers Real
Performance |
Timeline |
Oppenheimer Gold Special |
Cohen Steers Real |
Oppenheimer Gold and Cohen Steers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oppenheimer Gold and Cohen Steers
The main advantage of trading using opposite Oppenheimer Gold and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.Oppenheimer Gold vs. John Hancock Financial | Oppenheimer Gold vs. Financials Ultrasector Profund | Oppenheimer Gold vs. Blackrock Financial Institutions | Oppenheimer Gold vs. Icon Financial Fund |
Cohen Steers vs. Hennessy Bp Energy | Cohen Steers vs. Blackrock All Cap Energy | Cohen Steers vs. Oil Gas Ultrasector | Cohen Steers vs. Ivy Natural Resources |
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 CEOs Directory module to screen CEOs from public companies around the world.
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