Correlation Between Oklahoma College and Franklin Lifesmart
Can any of the company-specific risk be diversified away by investing in both Oklahoma College and Franklin Lifesmart 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 Oklahoma College and Franklin Lifesmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oklahoma College Savings and Franklin Lifesmart 2050, you can compare the effects of market volatilities on Oklahoma College and Franklin Lifesmart 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 Oklahoma College with a short position of Franklin Lifesmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma College and Franklin Lifesmart.
Diversification Opportunities for Oklahoma College and Franklin Lifesmart
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oklahoma and Franklin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Franklin Lifesmart 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Lifesmart 2050 and Oklahoma College 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 Oklahoma College Savings are associated (or correlated) with Franklin Lifesmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Lifesmart 2050 has no effect on the direction of Oklahoma College i.e., Oklahoma College and Franklin Lifesmart go up and down completely randomly.
Pair Corralation between Oklahoma College and Franklin Lifesmart
Assuming the 90 days horizon Oklahoma College Savings is expected to under-perform the Franklin Lifesmart. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oklahoma College Savings is 1.22 times less risky than Franklin Lifesmart. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Franklin Lifesmart 2050 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,575 in Franklin Lifesmart 2050 on August 24, 2024 and sell it today you would earn a total of 13.00 from holding Franklin Lifesmart 2050 or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma College Savings vs. Franklin Lifesmart 2050
Performance |
| Timeline |
| Oklahoma College Savings |
| Franklin Lifesmart 2050 |
Oklahoma College and Franklin Lifesmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma College and Franklin Lifesmart
The main advantage of trading using opposite Oklahoma College and Franklin Lifesmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma College position performs unexpectedly, Franklin Lifesmart 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 Franklin Lifesmart will offset losses from the drop in Franklin Lifesmart's long position.| Oklahoma College vs. Vanguard Total Stock | Oklahoma College vs. Vanguard 500 Index | Oklahoma College vs. Vanguard Total Stock | Oklahoma College vs. Vanguard Total Stock |
| Franklin Lifesmart vs. Vanguard Target Retirement | Franklin Lifesmart vs. ABIVAX Socit Anonyme | Franklin Lifesmart vs. SCOR PK | Franklin Lifesmart vs. HUMANA INC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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