Correlation Between Oklahoma Municipal and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Mainstay Fiera 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 Mainstay Fiera 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 Mainstay Fiera Smid, you can compare the effects of market volatilities on Oklahoma Municipal and Mainstay Fiera 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 Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Mainstay Fiera.
Diversification Opportunities for Oklahoma Municipal and Mainstay Fiera
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oklahoma and Mainstay is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Mainstay Fiera Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Fiera Smid 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 Mainstay Fiera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Fiera Smid has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Mainstay Fiera go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Mainstay Fiera
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 5.87 times less return on investment than Mainstay Fiera. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 4.5 times less risky than Mainstay Fiera. It trades about 0.04 of its potential returns per unit of risk. Mainstay Fiera Smid is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,596 in Mainstay Fiera Smid on August 24, 2024 and sell it today you would earn a total of 287.00 from holding Mainstay Fiera Smid or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.35% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Mainstay Fiera Smid
Performance |
| Timeline |
| Oklahoma Municipal |
| Mainstay Fiera Smid |
Oklahoma Municipal and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Mainstay Fiera
The main advantage of trading using opposite Oklahoma Municipal and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Mainstay Fiera 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 Mainstay Fiera will offset losses from the drop in Mainstay Fiera's long position.| Oklahoma Municipal vs. Kinetics Global Fund | Oklahoma Municipal vs. Barings Global Floating | Oklahoma Municipal vs. Ab Global Bond | Oklahoma Municipal vs. Commonwealth Global Fund |
| Mainstay Fiera vs. T Rowe Price | Mainstay Fiera vs. Oklahoma Municipal Fund | Mainstay Fiera vs. Ab Impact Municipal | Mainstay Fiera vs. T Rowe Price |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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