Correlation Between Oklahoma Municipal and Jhancock Real
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Jhancock Real 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 Jhancock Real 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 Jhancock Real Estate, you can compare the effects of market volatilities on Oklahoma Municipal and Jhancock Real 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 Jhancock Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Jhancock Real.
Diversification Opportunities for Oklahoma Municipal and Jhancock Real
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oklahoma and Jhancock is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Jhancock Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Real Estate 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 Jhancock Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Real Estate has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Jhancock Real go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Jhancock Real
Assuming the 90 days horizon Oklahoma Municipal Fund is expected to generate 0.33 times more return on investment than Jhancock Real. However, Oklahoma Municipal Fund is 2.99 times less risky than Jhancock Real. It trades about -0.07 of its potential returns per unit of risk. Jhancock Real Estate is currently generating about -0.16 per unit of risk. If you would invest 1,057 in Oklahoma Municipal Fund on September 20, 2024 and sell it today you would lose (3.00) from holding Oklahoma Municipal Fund or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Jhancock Real Estate
Performance |
| Timeline |
| Oklahoma Municipal |
| Jhancock Real Estate |
Oklahoma Municipal and Jhancock Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Jhancock Real
The main advantage of trading using opposite Oklahoma Municipal and Jhancock Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Jhancock Real 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 Jhancock Real will offset losses from the drop in Jhancock Real's long position.| Oklahoma Municipal vs. Metropolitan West High | Oklahoma Municipal vs. Nuveen Municipal High | Oklahoma Municipal vs. Pace High Yield | Oklahoma Municipal vs. Us High Relative |
| Jhancock Real vs. T Rowe Price | Jhancock Real vs. Oklahoma Municipal Fund | Jhancock Real vs. Ishares Municipal Bond | Jhancock Real vs. Nuveen Minnesota Municipal |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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