Correlation Between IShares Silver and Oppenheimer Global

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

By analyzing existing cross correlation between iShares Silver Trust and Oppenheimer Global Fd, you can compare the effects of market volatilities on IShares Silver and Oppenheimer Global 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 IShares Silver with a short position of Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Silver and Oppenheimer Global.

Diversification Opportunities for IShares Silver and Oppenheimer Global

0.23

Correlation Coefficient

IShares Silver  Oppenheimer Global

Modest diversification

The 3 months correlation between IShares and Oppenheimer is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding iShares Silver Trust and Oppenheimer Global Fd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global and IShares Silver 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 iShares Silver Trust are associated (or correlated) with Oppenheimer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Global has no effect on the direction of IShares Silver i.e., IShares Silver and Oppenheimer Global go up and down completely randomly.

Pair Corralation between IShares Silver and Oppenheimer Global

Considering the 90-day investment horizon iShares Silver Trust is expected to generate 4.68 times more return on investment than Oppenheimer Global. However, IShares Silver is 4.68 times more volatile than Oppenheimer Global Fd. It trades about 0.18 of its potential returns per unit of risk. Oppenheimer Global Fd is currently generating about 0.04 per unit of risk. If you would invest  2,492  in iShares Silver Trust on March 8, 2024 and sell it today you would earn a total of  248.00  from holding iShares Silver Trust or generate 9.95% return on investment over 90 days.

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

iShares Silver Trust  vs.  Oppenheimer Global Fd

iShares Silver Trust

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Silver Trust are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating essential indicators, IShares Silver showed solid returns over the last few months and may actually be approaching a breakup point.

Oppenheimer Global

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with IShares Silver and Oppenheimer Global

The main advantage of trading using opposite IShares Silver and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Silver position performs unexpectedly, Oppenheimer Global 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 Global will offset losses from the drop in Oppenheimer Global's long position.

The idea behind iShares Silver Trust and Oppenheimer Global Fd 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.