Correlation Between Oppenheimer International and Midas Special

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

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

Diversification Opportunities for Oppenheimer International and Midas Special

0.0

Correlation Coefficient

Oppenheimer International  Midas Special

Pay attention - limited upside

The 3 months correlation between Oppenheimer and Midas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer International Dive and Midas Special Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midas Special and Oppenheimer International 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 International Diversified are associated (or correlated) with Midas Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midas Special has no effect on the direction of Oppenheimer International i.e., Oppenheimer International and Midas Special go up and down completely randomly.

Pair Corralation between Oppenheimer International and Midas Special

Assuming the 90 days horizon Oppenheimer International Diversified is expected to under-perform the Midas Special. In addition to that, Oppenheimer International is 1.12 times more volatile than Midas Special Fund. It trades about -0.19 of its total potential returns per unit of risk. Midas Special Fund is currently generating about 0.11 per unit of volatility. If you would invest  3,448  in Midas Special Fund on September 21, 2024 and sell it today you would earn a total of  85.00  from holding Midas Special Fund or generate 2.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Oppenheimer International Dive  vs.  Midas Special Fund

Oppenheimer International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oppenheimer International Diversified 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.

Midas Special

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Midas Special Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Midas Special is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oppenheimer International and Midas Special

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

The idea behind Oppenheimer International Diversified and Midas Special Fund 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.

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.