Correlation Between Oklahoma College and Western Asset
Can any of the company-specific risk be diversified away by investing in both Oklahoma College and Western Asset 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 Western Asset 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 Western Asset Inflation, you can compare the effects of market volatilities on Oklahoma College and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma College and Western Asset.
Diversification Opportunities for Oklahoma College and Western Asset
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Oklahoma and Western is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Inflation has no effect on the direction of Oklahoma College i.e., Oklahoma College and Western Asset go up and down completely randomly.
Pair Corralation between Oklahoma College and Western Asset
Assuming the 90 days horizon Oklahoma College is expected to generate 3.13 times less return on investment than Western Asset. But when comparing it to its historical volatility, Oklahoma College Savings is 1.25 times less risky than Western Asset. It trades about 0.02 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 935.00 in Western Asset Inflation on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Western Asset Inflation or generate 0.32% 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. Western Asset Inflation
Performance |
| Timeline |
| Oklahoma College Savings |
| Western Asset Inflation |
Oklahoma College and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma College and Western Asset
The main advantage of trading using opposite Oklahoma College and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma College position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. Vanguard Inflation Protected Securities | Western Asset vs. HUMANA INC | Western Asset vs. Aquagold International | Western Asset vs. Barloworld Ltd ADR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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