Correlation Between Oppenheimer Gold and Payden Emerging
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Payden Emerging 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 Payden Emerging 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 Payden Emerging Markets, you can compare the effects of market volatilities on Oppenheimer Gold and Payden Emerging 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 Payden Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Payden Emerging.
Diversification Opportunities for Oppenheimer Gold and Payden Emerging
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppenheimer and Payden is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Payden Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Emerging Markets 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 Payden Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Emerging Markets has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Payden Emerging go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Payden Emerging
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 7.31 times more return on investment than Payden Emerging. However, Oppenheimer Gold is 7.31 times more volatile than Payden Emerging Markets. It trades about 0.19 of its potential returns per unit of risk. Payden Emerging Markets is currently generating about 0.43 per unit of risk. If you would invest 3,416 in Oppenheimer Gold Special on June 8, 2025 and sell it today you would earn a total of 674.00 from holding Oppenheimer Gold Special or generate 19.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. Payden Emerging Markets
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Payden Emerging Markets |
Oppenheimer Gold and Payden Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Payden Emerging
The main advantage of trading using opposite Oppenheimer Gold and Payden Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Payden Emerging 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 Payden Emerging will offset losses from the drop in Payden Emerging's long position.| Oppenheimer Gold vs. Tiaa Cref Real Estate | Oppenheimer Gold vs. Rreef Property Trust | Oppenheimer Gold vs. Baron Real Estate | Oppenheimer Gold vs. Global Real Estate |
| Payden Emerging vs. Payden Corporate Bond | Payden Emerging vs. Payden Floating Rate | Payden Emerging vs. Payden Absolute Return | Payden Emerging vs. Payden Porate Bond |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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