Correlation Between Oppenheimer Gold and Intermediate Term
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Gold and Intermediate Term 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 Intermediate Term 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 Intermediate Term Bond Fund, you can compare the effects of market volatilities on Oppenheimer Gold and Intermediate Term 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 Intermediate Term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Gold and Intermediate Term.
Diversification Opportunities for Oppenheimer Gold and Intermediate Term
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oppenheimer and Intermediate is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Gold Special and Intermediate Term Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term Bond 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 Intermediate Term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Bond has no effect on the direction of Oppenheimer Gold i.e., Oppenheimer Gold and Intermediate Term go up and down completely randomly.
Pair Corralation between Oppenheimer Gold and Intermediate Term
Assuming the 90 days horizon Oppenheimer Gold Special is expected to generate 6.5 times more return on investment than Intermediate Term. However, Oppenheimer Gold is 6.5 times more volatile than Intermediate Term Bond Fund. It trades about 0.09 of its potential returns per unit of risk. Intermediate Term Bond Fund is currently generating about 0.08 per unit of risk. If you would invest 3,095 in Oppenheimer Gold Special on April 24, 2025 and sell it today you would earn a total of 307.00 from holding Oppenheimer Gold Special or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Gold Special vs. Intermediate Term Bond Fund
Performance |
| Timeline |
| Oppenheimer Gold Special |
| Intermediate Term Bond |
Oppenheimer Gold and Intermediate Term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Gold and Intermediate Term
The main advantage of trading using opposite Oppenheimer Gold and Intermediate Term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Gold position performs unexpectedly, Intermediate Term 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 Intermediate Term will offset losses from the drop in Intermediate Term's long position.| Oppenheimer Gold vs. Federated Government Income | Oppenheimer Gold vs. Blackrock Government Bond | Oppenheimer Gold vs. Dreyfus Government Cash | Oppenheimer Gold vs. Columbia Government Mortgage |
| Intermediate Term vs. Tiaa Cref Inflation Linked Bond | Intermediate Term vs. Atac Inflation Rotation | Intermediate Term vs. Lincoln Inflation Plus | Intermediate Term vs. Ab Bond Inflation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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