Correlation Between Oklahoma Municipal and Guidepath Managed
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Guidepath Managed 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 Guidepath Managed 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 Guidepath Managed Futures, you can compare the effects of market volatilities on Oklahoma Municipal and Guidepath Managed 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 Guidepath Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Guidepath Managed.
Diversification Opportunities for Oklahoma Municipal and Guidepath Managed
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oklahoma and Guidepath is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures 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 Guidepath Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Guidepath Managed go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Guidepath Managed
Assuming the 90 days horizon Oklahoma Municipal Fund is expected to generate 0.24 times more return on investment than Guidepath Managed. However, Oklahoma Municipal Fund is 4.08 times less risky than Guidepath Managed. It trades about 0.4 of its potential returns per unit of risk. Guidepath Managed Futures is currently generating about 0.09 per unit of risk. If you would invest 1,055 in Oklahoma Municipal Fund on September 14, 2024 and sell it today you would earn a total of 11.00 from holding Oklahoma Municipal Fund or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Guidepath Managed Futures
Performance |
| Timeline |
| Oklahoma Municipal |
| Guidepath Managed Futures |
Oklahoma Municipal and Guidepath Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Guidepath Managed
The main advantage of trading using opposite Oklahoma Municipal and Guidepath Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Guidepath Managed 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 Guidepath Managed will offset losses from the drop in Guidepath Managed's long position.| Oklahoma Municipal vs. Forum Real Estate | Oklahoma Municipal vs. Columbia Real Estate | Oklahoma Municipal vs. Pender Real Estate | Oklahoma Municipal vs. Prudential Real Estate |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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