Correlation Between Floating Rate and Oklahoma College
Can any of the company-specific risk be diversified away by investing in both Floating Rate and Oklahoma College 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 Floating Rate and Oklahoma College into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Floating Rate Fund and Oklahoma College Savings, you can compare the effects of market volatilities on Floating Rate and Oklahoma College 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 Floating Rate with a short position of Oklahoma College. Check out your portfolio center. Please also check ongoing floating volatility patterns of Floating Rate and Oklahoma College.
Diversification Opportunities for Floating Rate and Oklahoma College
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Floating and Oklahoma is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Floating Rate Fund and Oklahoma College Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma College Savings and Floating Rate 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 Floating Rate Fund are associated (or correlated) with Oklahoma College. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma College Savings has no effect on the direction of Floating Rate i.e., Floating Rate and Oklahoma College go up and down completely randomly.
Pair Corralation between Floating Rate and Oklahoma College
Assuming the 90 days horizon Floating Rate Fund is expected to under-perform the Oklahoma College. But the mutual fund apears to be less risky and, when comparing its historical volatility, Floating Rate Fund is 16.78 times less risky than Oklahoma College. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Oklahoma College Savings is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,167 in Oklahoma College Savings on November 4, 2024 and sell it today you would earn a total of 54.00 from holding Oklahoma College Savings or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Floating Rate Fund vs. Oklahoma College Savings
Performance |
| Timeline |
| Floating Rate |
| Oklahoma College Savings |
Floating Rate and Oklahoma College Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Floating Rate and Oklahoma College
The main advantage of trading using opposite Floating Rate and Oklahoma College positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Floating Rate position performs unexpectedly, Oklahoma College 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 College will offset losses from the drop in Oklahoma College's long position.| Floating Rate vs. Needham Aggressive Growth | Floating Rate vs. Barings High Yield | Floating Rate vs. Chartwell Short Duration | Floating Rate vs. Ab High Income |
| Oklahoma College vs. Praxis Small Cap | Oklahoma College vs. Small Pany Growth | Oklahoma College vs. Df Dent Small | Oklahoma College vs. Touchstone Small Cap |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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