Correlation Between Oklahoma Municipal and Integrity Growth
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Integrity Growth 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 Municipal and Integrity Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oklahoma Municipal Fund and Integrity Growth Income, you can compare the effects of market volatilities on Oklahoma Municipal and Integrity Growth 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 Municipal with a short position of Integrity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Integrity Growth.
Diversification Opportunities for Oklahoma Municipal and Integrity Growth
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oklahoma and Integrity is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Integrity Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrity Growth Income and Oklahoma Municipal 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 Municipal Fund are associated (or correlated) with Integrity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrity Growth Income has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Integrity Growth go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Integrity Growth
Assuming the 90 days horizon Oklahoma Municipal Fund is expected to under-perform the Integrity Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oklahoma Municipal Fund is 2.25 times less risky than Integrity Growth. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Integrity Growth Income is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,752 in Integrity Growth Income on August 25, 2024 and sell it today you would earn a total of 314.00 from holding Integrity Growth Income or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Integrity Growth Income
Performance |
| Timeline |
| Oklahoma Municipal |
| Integrity Growth Income |
Oklahoma Municipal and Integrity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Integrity Growth
The main advantage of trading using opposite Oklahoma Municipal and Integrity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Integrity Growth 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 Integrity Growth will offset losses from the drop in Integrity Growth's long position.| Oklahoma Municipal vs. Growth Fund Of | Oklahoma Municipal vs. Champlain Mid Cap | Oklahoma Municipal vs. Victory Rs Growth | Oklahoma Municipal vs. Eip Growth And |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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