Correlation Between Oklahoma Municipal and Pacific Funds
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Pacific Funds 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 Pacific Funds 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 Pacific Funds Small Cap, you can compare the effects of market volatilities on Oklahoma Municipal and Pacific Funds 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 Pacific Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Pacific Funds.
Diversification Opportunities for Oklahoma Municipal and Pacific Funds
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oklahoma and Pacific is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Pacific Funds Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Funds Small 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 Pacific Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Funds Small has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Pacific Funds go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Pacific Funds
If you would invest 1,007 in Oklahoma Municipal Fund on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Oklahoma Municipal Fund or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.32% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Pacific Funds Small Cap
Performance |
| Timeline |
| Oklahoma Municipal |
| Pacific Funds Small |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oklahoma Municipal and Pacific Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Pacific Funds
The main advantage of trading using opposite Oklahoma Municipal and Pacific Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Pacific Funds 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 Pacific Funds will offset losses from the drop in Pacific Funds' 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 |
| Pacific Funds vs. Virtus High Yield | Pacific Funds vs. Prudential High Yield | Pacific Funds vs. Gmo High Yield | Pacific Funds vs. Calvert High Yield |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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