Correlation Between Oklahoma College and Franklin Federal
Can any of the company-specific risk be diversified away by investing in both Oklahoma College and Franklin Federal 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 Federal 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 Federal Limited Term, you can compare the effects of market volatilities on Oklahoma College and Franklin Federal 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 Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma College and Franklin Federal.
Diversification Opportunities for Oklahoma College and Franklin Federal
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oklahoma and Franklin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Franklin Federal Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Federal Lim 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 Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Federal Lim has no effect on the direction of Oklahoma College i.e., Oklahoma College and Franklin Federal go up and down completely randomly.
Pair Corralation between Oklahoma College and Franklin Federal
Assuming the 90 days horizon Oklahoma College Savings is expected to generate 6.43 times more return on investment than Franklin Federal. However, Oklahoma College is 6.43 times more volatile than Franklin Federal Limited Term. It trades about 0.29 of its potential returns per unit of risk. Franklin Federal Limited Term is currently generating about 0.18 per unit of risk. If you would invest 1,175 in Oklahoma College Savings on October 26, 2024 and sell it today you would earn a total of 49.00 from holding Oklahoma College Savings or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma College Savings vs. Franklin Federal Limited Term
Performance |
| Timeline |
| Oklahoma College Savings |
| Franklin Federal Lim |
Oklahoma College and Franklin Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma College and Franklin Federal
The main advantage of trading using opposite Oklahoma College and Franklin Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma College position performs unexpectedly, Franklin Federal 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 Federal will offset losses from the drop in Franklin Federal's long position.| Oklahoma College vs. Precious Metals And | Oklahoma College vs. James Balanced Golden | Oklahoma College vs. Invesco Gold Special | Oklahoma College vs. Sprott Gold Equity |
| Franklin Federal vs. Aqr Diversified Arbitrage | Franklin Federal vs. Vy T Rowe | Franklin Federal vs. Oklahoma College Savings | Franklin Federal vs. Wilmington Diversified Income |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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