Correlation Between Oklahoma Municipal and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Aim Investment 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 Aim Investment 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 Aim Investment Secs, you can compare the effects of market volatilities on Oklahoma Municipal and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Aim Investment.
Diversification Opportunities for Oklahoma Municipal and Aim Investment
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oklahoma and Aim is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Aim Investment Secs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Secs 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Secs has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Aim Investment go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Aim Investment
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 1.82 times less return on investment than Aim Investment. In addition to that, Oklahoma Municipal is 1.81 times more volatile than Aim Investment Secs. It trades about 0.04 of its total potential returns per unit of risk. Aim Investment Secs is currently generating about 0.13 per unit of volatility. If you would invest 92.00 in Aim Investment Secs on August 24, 2024 and sell it today you would earn a total of 8.00 from holding Aim Investment Secs or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Aim Investment Secs
Performance |
| Timeline |
| Oklahoma Municipal |
| Aim Investment Secs |
Oklahoma Municipal and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Aim Investment
The main advantage of trading using opposite Oklahoma Municipal and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment's long position.| Oklahoma Municipal vs. Kinetics Global Fund | Oklahoma Municipal vs. Barings Global Floating | Oklahoma Municipal vs. Ab Global Bond | Oklahoma Municipal vs. Commonwealth Global Fund |
| Aim Investment vs. Counterpoint Tactical Municipal | Aim Investment vs. Baird Strategic Municipal | Aim Investment vs. Oklahoma Municipal Fund | Aim Investment vs. Ab Impact 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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