Correlation Between Oklahoma Municipal and Aristotle Small
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Aristotle Small 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 Small 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 Small Cap, you can compare the effects of market volatilities on Oklahoma Municipal and Aristotle Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Aristotle Small.
Diversification Opportunities for Oklahoma Municipal and Aristotle Small
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oklahoma and Aristotle is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Aristotle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Small Cap 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Small Cap has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Aristotle Small go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Aristotle Small
If you would invest 1,049 in Oklahoma Municipal Fund on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Oklahoma Municipal Fund or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Aristotle Small Cap
Performance |
| Timeline |
| Oklahoma Municipal |
| Aristotle Small Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oklahoma Municipal and Aristotle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Aristotle Small
The main advantage of trading using opposite Oklahoma Municipal and Aristotle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Aristotle Small 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 Small will offset losses from the drop in Aristotle Small's long position.| Oklahoma Municipal vs. Mesirow Financial Small | Oklahoma Municipal vs. Transamerica Financial Life | Oklahoma Municipal vs. 1919 Financial Services | Oklahoma Municipal vs. Angel Oak Financial |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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