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 Diversified, 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
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oklahoma and Western is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified 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 Diversified 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 Savings is expected to generate 1.22 times more return on investment than Western Asset. However, Oklahoma College is 1.22 times more volatile than Western Asset Diversified. It trades about 0.18 of its potential returns per unit of risk. Western Asset Diversified is currently generating about 0.03 per unit of risk. If you would invest 1,011 in Oklahoma College Savings on November 27, 2024 and sell it today you would earn a total of 10.00 from holding Oklahoma College Savings or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Oklahoma College Savings vs. Western Asset Diversified
Performance |
| Timeline |
| Oklahoma College Savings |
| Western Asset Diversified |
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. Voya High Yield | Oklahoma College vs. Gmo High Yield | Oklahoma College vs. Pace High Yield | Oklahoma College vs. Calvert High Yield |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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