Correlation Between Oklahoma Municipal and Jpmorgan Strategic
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Jpmorgan Strategic 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 Jpmorgan Strategic 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 Jpmorgan Strategic Income, you can compare the effects of market volatilities on Oklahoma Municipal and Jpmorgan Strategic 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 Jpmorgan Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Jpmorgan Strategic.
Diversification Opportunities for Oklahoma Municipal and Jpmorgan Strategic
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oklahoma and Jpmorgan is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Jpmorgan Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Strategic Income 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 Jpmorgan Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Strategic Income has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Jpmorgan Strategic go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Jpmorgan Strategic
Assuming the 90 days horizon Oklahoma Municipal Fund is expected to under-perform the Jpmorgan Strategic. In addition to that, Oklahoma Municipal is 3.06 times more volatile than Jpmorgan Strategic Income. It trades about -0.39 of its total potential returns per unit of risk. Jpmorgan Strategic Income is currently generating about 0.13 per unit of volatility. If you would invest 1,143 in Jpmorgan Strategic Income on October 11, 2024 and sell it today you would earn a total of 3.00 from holding Jpmorgan Strategic Income or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Jpmorgan Strategic Income
Performance |
| Timeline |
| Oklahoma Municipal |
| Jpmorgan Strategic Income |
Oklahoma Municipal and Jpmorgan Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Jpmorgan Strategic
The main advantage of trading using opposite Oklahoma Municipal and Jpmorgan Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Jpmorgan Strategic 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 Jpmorgan Strategic will offset losses from the drop in Jpmorgan Strategic's long position.| Oklahoma Municipal vs. Ms Global Fixed | Oklahoma Municipal vs. Kinetics Global Fund | Oklahoma Municipal vs. Federated Global Allocation | Oklahoma Municipal vs. Rbb Fund Trust |
| Jpmorgan Strategic vs. Oklahoma Municipal Fund | Jpmorgan Strategic vs. Artisan High Income | Jpmorgan Strategic vs. Dws Government Money | Jpmorgan Strategic vs. Multisector Bond Sma |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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