Correlation Between Calvert Large and Oppenheimer Gold

Can any of the company-specific risk be diversified away by investing in both Calvert Large 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 Large 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 Large Cap E and Oppenheimer Gold Special, you can compare the effects of market volatilities on Calvert Large 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 Large with a short position of Oppenheimer Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Large and Oppenheimer Gold.

Diversification Opportunities for Calvert Large and Oppenheimer Gold

-0.25

Correlation Coefficient

Calvert Large  Oppenheimer Gold

Very good diversification

The 3 months correlation between Calvert and Oppenheimer is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap E 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 Large 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 Large Cap E 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 Large i.e., Calvert Large and Oppenheimer Gold go up and down completely randomly.

Pair Corralation between Calvert Large and Oppenheimer Gold

Assuming the 90 days horizon Calvert Large is expected to generate 3.37 times less return on investment than Oppenheimer Gold. But when comparing it to its historical volatility, Calvert Large Cap E is 3.26 times less risky than Oppenheimer Gold. It trades about 0.18 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,362  in Oppenheimer Gold Special on September 14, 2024 and sell it today you would earn a total of  163.00  from holding Oppenheimer Gold Special or generate 6.9% return on investment over 90 days.

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

Calvert Large Cap E  vs.  Oppenheimer Gold Special

Calvert Large Cap

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap E are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Large may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Oppenheimer Gold Special

Risk-Adjusted Performance

0 of 100

Insignificant

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

Pair Trading with Calvert Large and Oppenheimer Gold

The main advantage of trading using opposite Calvert Large and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large 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 Large Cap E 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.