Correlation Between Oklahoma College and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Oklahoma College and Franklin Mutual 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 Mutual 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 Mutual Global, you can compare the effects of market volatilities on Oklahoma College and Franklin Mutual 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 Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma College and Franklin Mutual.
Diversification Opportunities for Oklahoma College and Franklin Mutual
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oklahoma and Franklin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global 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 Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of Oklahoma College i.e., Oklahoma College and Franklin Mutual go up and down completely randomly.
Pair Corralation between Oklahoma College and Franklin Mutual
Assuming the 90 days horizon Oklahoma College Savings is expected to generate 0.6 times more return on investment than Franklin Mutual. However, Oklahoma College Savings is 1.66 times less risky than Franklin Mutual. It trades about 0.09 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about -0.15 per unit of risk. If you would invest 1,193 in Oklahoma College Savings on October 26, 2024 and sell it today you would earn a total of 31.00 from holding Oklahoma College Savings or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma College Savings vs. Franklin Mutual Global
Performance |
| Timeline |
| Oklahoma College Savings |
| Franklin Mutual Global |
Oklahoma College and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma College and Franklin Mutual
The main advantage of trading using opposite Oklahoma College and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma College position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual'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 Mutual vs. Principal Lifetime Hybrid | Franklin Mutual vs. Oklahoma College Savings | Franklin Mutual vs. Jhancock Diversified Macro | Franklin Mutual vs. Vy T Rowe |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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