Correlation Between Calvert Responsible and Oppenheimer Gold

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Can any of the company-specific risk be diversified away by investing in both Calvert Responsible 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 Calvert Responsible and Oppenheimer Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Responsible Index and Oppenheimer Gold Special, you can compare the effects of market volatilities on Calvert Responsible 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 Calvert Responsible with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Responsible and Oppenheimer Gold.

Diversification Opportunities for Calvert Responsible and Oppenheimer Gold

0.7
  Correlation Coefficient

Poor diversification

The 3 months correlation between Calvert and Oppenheimer is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Responsible Index 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 Calvert Responsible 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 Calvert Responsible Index 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 Calvert Responsible i.e., Calvert Responsible and Oppenheimer Gold go up and down completely randomly.

Pair Corralation between Calvert Responsible and Oppenheimer Gold

Assuming the 90 days horizon Calvert Responsible is expected to generate 7.3 times less return on investment than Oppenheimer Gold. But when comparing it to its historical volatility, Calvert Responsible Index is 3.59 times less risky than Oppenheimer Gold. It trades about 0.11 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  3,288  in Oppenheimer Gold Special on July 26, 2025 and sell it today you would earn a total of  1,152  from holding Oppenheimer Gold Special or generate 35.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Calvert Responsible Index  vs.  Oppenheimer Gold Special

 Performance 
       Timeline  
Calvert Responsible Index 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Responsible Index are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert Responsible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Oppenheimer Gold Special 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Gold Special are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Oppenheimer Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Calvert Responsible and Oppenheimer Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calvert Responsible and Oppenheimer Gold

The main advantage of trading using opposite Calvert Responsible and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Responsible 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 Calvert Responsible Index 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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