Correlation Between Oklahoma Municipal and Thrivent Income
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Thrivent Income 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 Thrivent Income 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 Thrivent Income Fund, you can compare the effects of market volatilities on Oklahoma Municipal and Thrivent Income 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 Thrivent Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Thrivent Income.
Diversification Opportunities for Oklahoma Municipal and Thrivent Income
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oklahoma and Thrivent is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Thrivent Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent 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 Thrivent Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Income has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Thrivent Income go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Thrivent Income
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 2.49 times less return on investment than Thrivent Income. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 1.76 times less risky than Thrivent Income. It trades about 0.03 of its potential returns per unit of risk. Thrivent Income Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 749.00 in Thrivent Income Fund on September 3, 2024 and sell it today you would earn a total of 74.00 from holding Thrivent Income Fund or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Thrivent Income Fund
Performance |
| Timeline |
| Oklahoma Municipal |
| Thrivent Income |
Oklahoma Municipal and Thrivent Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Thrivent Income
The main advantage of trading using opposite Oklahoma Municipal and Thrivent Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Thrivent Income 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 Thrivent Income will offset losses from the drop in Thrivent Income's long position.| Oklahoma Municipal vs. Limited Term Tax | Oklahoma Municipal vs. Calvert Short Duration | Oklahoma Municipal vs. Federated Short Term Income | Oklahoma Municipal vs. Jhancock Short Duration |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |