Correlation Between Alternative Strategies and Oppenheimer Gold

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

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

Diversification Opportunities for Alternative Strategies and Oppenheimer Gold

0.39

Correlation Coefficient

Alternative Strategies  Oppenheimer Gold

Weak diversification

The 3 months correlation between Alternative and Oppenheimer is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Alternative Strategies 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 Alternative Strategies 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 Alternative Strategies 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 Alternative Strategies i.e., Alternative Strategies and Oppenheimer Gold go up and down completely randomly.

Pair Corralation between Alternative Strategies and Oppenheimer Gold

Assuming the 90 days horizon Alternative Strategies is expected to generate 0.49 times more return on investment than Oppenheimer Gold. However, Alternative Strategies is 2.05 times less risky than Oppenheimer Gold. It trades about 0.31 of its potential returns per unit of risk. Oppenheimer Gold Special is currently generating about 0.08 per unit of risk. If you would invest  1,297  in Alternative Strategies on May 7, 2025 and sell it today you would earn a total of  241.00  from holding Alternative Strategies or generate 18.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Alternative Strategies  vs.  Oppenheimer Gold Special

Alternative Strategies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alternative Strategies are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Alternative Strategies showed solid returns over the last few months and may actually be approaching a breakup point.

Oppenheimer Gold Special

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Gold Special are ranked lower than 6 (%) 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 September 2025.

Pair Trading with Alternative Strategies and Oppenheimer Gold

The main advantage of trading using opposite Alternative Strategies and Oppenheimer Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternative Strategies 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 Alternative Strategies 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.