Correlation Between Oklahoma Municipal and Gmo Emerging
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Gmo Emerging 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 Gmo Emerging 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 Gmo Emerging Markets, you can compare the effects of market volatilities on Oklahoma Municipal and Gmo Emerging 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 Gmo Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Gmo Emerging.
Diversification Opportunities for Oklahoma Municipal and Gmo Emerging
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oklahoma and Gmo is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Gmo Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Emerging Markets 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 Gmo Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Emerging Markets has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Gmo Emerging go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Gmo Emerging
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 1.56 times less return on investment than Gmo Emerging. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 4.44 times less risky than Gmo Emerging. It trades about 0.4 of its potential returns per unit of risk. Gmo Emerging Markets is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,440 in Gmo Emerging Markets on September 13, 2024 and sell it today you would earn a total of 39.00 from holding Gmo Emerging Markets or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Gmo Emerging Markets
Performance |
| Timeline |
| Oklahoma Municipal |
| Gmo Emerging Markets |
Oklahoma Municipal and Gmo Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Gmo Emerging
The main advantage of trading using opposite Oklahoma Municipal and Gmo Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Gmo Emerging 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 Gmo Emerging will offset losses from the drop in Gmo Emerging's long position.| Oklahoma Municipal vs. Gamco Natural Resources | Oklahoma Municipal vs. Fidelity Advisor Energy | Oklahoma Municipal vs. Jennison Natural Resources | Oklahoma Municipal vs. Franklin Natural Resources |
| Gmo Emerging vs. Franklin High Income | Gmo Emerging vs. Artisan High Income | Gmo Emerging vs. Lgm Risk Managed | Gmo Emerging vs. Ab Global Risk |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |