Correlation Between Oppenheimer Gold and American Beacon
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and American Beacon 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 American Beacon 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 American Beacon Funds, you can compare the effects of market volatilities on Oppenheimer Gold and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and American Beacon.
Diversification Opportunities for Oppenheimer Gold and American Beacon
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oppenheimer and American is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and American Beacon Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Funds 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Funds has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and American Beacon go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and American Beacon
Assuming the 90 days horizon Oppenheimer Gold Special is expected to under-perform the American Beacon. In addition to that, Oppenheimer Gold is 12.59 times more volatile than American Beacon Funds. It trades about -0.02 of its total potential returns per unit of risk. American Beacon Funds is currently generating about 0.08 per unit of volatility. If you would invest 854.00 in American Beacon Funds on September 15, 2024 and sell it today you would earn a total of 6.00 from holding American Beacon Funds or generate 0.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
Oppenheimer Gold Special vs. American Beacon Funds
Performance |
Timeline |
Oppenheimer Gold Special |
American Beacon Funds |
Oppenheimer Gold and American Beacon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oppenheimer Gold and American Beacon
The main advantage of trading using opposite Oppenheimer Gold and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.Oppenheimer Gold vs. Versatile Bond Portfolio | Oppenheimer Gold vs. Touchstone Premium Yield | Oppenheimer Gold vs. Morningstar Defensive Bond | Oppenheimer Gold vs. Doubleline Yield Opportunities |
American Beacon vs. Siit Ultra Short | American Beacon vs. Quantitative Longshort Equity | American Beacon vs. Astor Longshort Fund | American Beacon vs. Cmg Ultra Short |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |