Correlation Between Oklahoma College and Franklin Convertible
Can any of the company-specific risk be diversified away by investing in both Oklahoma College and Franklin Convertible 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 Convertible 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 Vertible Securities, you can compare the effects of market volatilities on Oklahoma College and Franklin Convertible 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 Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma College and Franklin Convertible.
Diversification Opportunities for Oklahoma College and Franklin Convertible
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oklahoma and Franklin is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Franklin Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Convertible 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 Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Convertible has no effect on the direction of Oklahoma College i.e., Oklahoma College and Franklin Convertible go up and down completely randomly.
Pair Corralation between Oklahoma College and Franklin Convertible
Assuming the 90 days horizon Oklahoma College is expected to generate 22.73 times less return on investment than Franklin Convertible. In addition to that, Oklahoma College is 1.33 times more volatile than Franklin Vertible Securities. It trades about 0.02 of its total potential returns per unit of risk. Franklin Vertible Securities is currently generating about 0.58 per unit of volatility. If you would invest 2,325 in Franklin Vertible Securities on September 3, 2024 and sell it today you would earn a total of 163.00 from holding Franklin Vertible Securities or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma College Savings vs. Franklin Vertible Securities
Performance |
| Timeline |
| Oklahoma College Savings |
| Franklin Convertible |
Oklahoma College and Franklin Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma College and Franklin Convertible
The main advantage of trading using opposite Oklahoma College and Franklin Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma College position performs unexpectedly, Franklin Convertible 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 Convertible will offset losses from the drop in Franklin Convertible'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 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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