Correlation Between Oklahoma Municipal and Eventide Global
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Eventide Global 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 Eventide Global 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 Eventide Global Dividend, you can compare the effects of market volatilities on Oklahoma Municipal and Eventide Global 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 Eventide Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Eventide Global.
Diversification Opportunities for Oklahoma Municipal and Eventide Global
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oklahoma and Eventide is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Eventide Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Global Dividend 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 Eventide Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Global Dividend has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Eventide Global go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Eventide Global
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 4.25 times less return on investment than Eventide Global. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 3.66 times less risky than Eventide Global. It trades about 0.12 of its potential returns per unit of risk. Eventide Global Dividend is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,732 in Eventide Global Dividend on September 1, 2024 and sell it today you would earn a total of 293.00 from holding Eventide Global Dividend or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Eventide Global Dividend
Performance |
| Timeline |
| Oklahoma Municipal |
| Eventide Global Dividend |
Oklahoma Municipal and Eventide Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Eventide Global
The main advantage of trading using opposite Oklahoma Municipal and Eventide Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Eventide Global 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 Eventide Global will offset losses from the drop in Eventide Global'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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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