Correlation Between Gmo Global and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Gmo Global and Oklahoma Municipal 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 Gmo Global and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Global Equity and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Gmo Global and Oklahoma Municipal 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 Gmo Global with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Global and Oklahoma Municipal.
Diversification Opportunities for Gmo Global and Oklahoma Municipal
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gmo and Oklahoma is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Equity and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and Gmo Global 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 Gmo Global Equity are associated (or correlated) with Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Gmo Global i.e., Gmo Global and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Gmo Global and Oklahoma Municipal
Assuming the 90 days horizon Gmo Global Equity is expected to under-perform the Oklahoma Municipal. In addition to that, Gmo Global is 4.9 times more volatile than Oklahoma Municipal Fund. It trades about -0.21 of its total potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about -0.39 per unit of volatility. If you would invest 1,068 in Oklahoma Municipal Fund on October 11, 2024 and sell it today you would lose (25.00) from holding Oklahoma Municipal Fund or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Global Equity vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Gmo Global Equity |
| Oklahoma Municipal |
Gmo Global and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Global and Oklahoma Municipal
The main advantage of trading using opposite Gmo Global and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Global position performs unexpectedly, Oklahoma Municipal 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| Gmo Global vs. Vy Franklin Income | Gmo Global vs. Arrow Managed Futures | Gmo Global vs. Small Pany Growth | Gmo Global vs. Ab New York |
| Oklahoma Municipal vs. Ms Global Fixed | Oklahoma Municipal vs. Kinetics Global Fund | Oklahoma Municipal vs. Federated Global Allocation | Oklahoma Municipal vs. Rbb Fund Trust |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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