Correlation Between Oklahoma Municipal and Aristotle Funds
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Aristotle Funds 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 Aristotle Funds 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 Aristotle Funds Series, you can compare the effects of market volatilities on Oklahoma Municipal and Aristotle Funds 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 Aristotle Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Aristotle Funds.
Diversification Opportunities for Oklahoma Municipal and Aristotle Funds
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oklahoma and Aristotle is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Aristotle Funds Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Funds Series 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 Aristotle Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Funds Series has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Aristotle Funds go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Aristotle Funds
Assuming the 90 days horizon Oklahoma Municipal Fund is expected to under-perform the Aristotle Funds. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oklahoma Municipal Fund is 3.29 times less risky than Aristotle Funds. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Aristotle Funds Series is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 776.00 in Aristotle Funds Series on August 30, 2024 and sell it today you would earn a total of 49.00 from holding Aristotle Funds Series or generate 6.31% 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. Aristotle Funds Series
Performance |
| Timeline |
| Oklahoma Municipal |
| Aristotle Funds Series |
Oklahoma Municipal and Aristotle Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Aristotle Funds
The main advantage of trading using opposite Oklahoma Municipal and Aristotle Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Aristotle Funds 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 Aristotle Funds will offset losses from the drop in Aristotle Funds' long position.| Oklahoma Municipal vs. Virginia Bond Fund | Oklahoma Municipal vs. HUMANA INC | Oklahoma Municipal vs. Aquagold International | Oklahoma Municipal vs. Barloworld Ltd ADR |
| Aristotle Funds vs. Oklahoma Municipal Fund | Aristotle Funds vs. T Rowe Price | Aristotle Funds vs. Ab Impact Municipal | Aristotle Funds vs. Bbh Intermediate Municipal |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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