Correlation Between Vy Goldman and Oppenheimer Gold

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

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

Diversification Opportunities for Vy Goldman and Oppenheimer Gold

-0.16

Correlation Coefficient

Vy Goldman  Oppenheimer Gold

Good diversification

The 3 months correlation between VGSBX and Oppenheimer is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Vy Goldman Sachs 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 Vy Goldman 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 Vy Goldman Sachs 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 Vy Goldman i.e., Vy Goldman and Oppenheimer Gold go up and down completely randomly.

Pair Corralation between Vy Goldman and Oppenheimer Gold

Assuming the 90 days horizon Vy Goldman Sachs is expected to under-perform the Oppenheimer Gold. But the mutual fund apears to be less risky and, when comparing its historical volatility, Vy Goldman Sachs is 4.74 times less risky than Oppenheimer Gold. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Oppenheimer Gold Special is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,337  in Oppenheimer Gold Special on September 3, 2024 and sell it today you would earn a total of  177.00  from holding Oppenheimer Gold Special or generate 7.57% return on investment over 90 days.

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

Vy Goldman Sachs  vs.  Oppenheimer Gold Special

Vy Goldman Sachs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vy Goldman Sachs has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Vy Goldman 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

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Gold Special are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Oppenheimer Gold may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Vy Goldman and Oppenheimer Gold

The main advantage of trading using opposite Vy Goldman and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Goldman 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 Vy Goldman Sachs 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.