Correlation Between Oklahoma Municipal and Nuveen Limited
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Nuveen Limited 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 Nuveen Limited 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 Nuveen Limited Term, you can compare the effects of market volatilities on Oklahoma Municipal and Nuveen Limited 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 Nuveen Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Nuveen Limited.
Diversification Opportunities for Oklahoma Municipal and Nuveen Limited
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oklahoma and Nuveen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Nuveen Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Limited Term 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 Nuveen Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Limited Term has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Nuveen Limited go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Nuveen Limited
Assuming the 90 days horizon Oklahoma Municipal Fund is expected to generate 1.83 times more return on investment than Nuveen Limited. However, Oklahoma Municipal is 1.83 times more volatile than Nuveen Limited Term. It trades about 0.05 of its potential returns per unit of risk. Nuveen Limited Term is currently generating about 0.07 per unit of risk. If you would invest 1,001 in Oklahoma Municipal Fund on November 28, 2024 and sell it today you would earn a total of 55.00 from holding Oklahoma Municipal Fund or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Nuveen Limited Term
Performance |
| Timeline |
| Oklahoma Municipal |
| Nuveen Limited Term |
Oklahoma Municipal and Nuveen Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Nuveen Limited
The main advantage of trading using opposite Oklahoma Municipal and Nuveen Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Nuveen Limited 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 Nuveen Limited will offset losses from the drop in Nuveen Limited's long position.| Oklahoma Municipal vs. Guidemark E Fixed | Oklahoma Municipal vs. Gmo Quality Fund | Oklahoma Municipal vs. Versatile Bond Portfolio | Oklahoma Municipal vs. Buffalo High Yield |
| Nuveen Limited vs. Clearbridge Energy Mlp | Nuveen Limited vs. Franklin Natural Resources | Nuveen Limited vs. Oil Gas Ultrasector | Nuveen Limited vs. Thrivent Natural Resources |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |