Correlation Between Oklahoma Municipal and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Cohen Steers 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 Cohen Steers 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 Cohen Steers Mlp, you can compare the effects of market volatilities on Oklahoma Municipal and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Cohen Steers.
Diversification Opportunities for Oklahoma Municipal and Cohen Steers
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oklahoma and Cohen is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Cohen Steers Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Mlp 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Mlp has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Cohen Steers go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Cohen Steers
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 1.89 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 3.62 times less risky than Cohen Steers. It trades about 0.12 of its potential returns per unit of risk. Cohen Steers Mlp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 870.00 in Cohen Steers Mlp on September 1, 2024 and sell it today you would earn a total of 60.00 from holding Cohen Steers Mlp or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Cohen Steers Mlp
Performance |
| Timeline |
| Oklahoma Municipal |
| Cohen Steers Mlp |
Oklahoma Municipal and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Cohen Steers
The main advantage of trading using opposite Oklahoma Municipal and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Oklahoma Municipal vs. Mesirow Financial Small | Oklahoma Municipal vs. Transamerica Financial Life | Oklahoma Municipal vs. 1919 Financial Services | Oklahoma Municipal vs. Angel Oak Financial |
| Cohen Steers vs. Nuveen Arizona Municipal | Cohen Steers vs. Alliancebernstein National Municipal | Cohen Steers vs. Transamerica Funds | Cohen Steers vs. Oklahoma Municipal Fund |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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