Correlation Between Oklahoma Municipal and Steward Covered
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Steward Covered 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 Steward Covered 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 Steward Ered Call, you can compare the effects of market volatilities on Oklahoma Municipal and Steward Covered 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 Steward Covered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Steward Covered.
Diversification Opportunities for Oklahoma Municipal and Steward Covered
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oklahoma and Steward is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Steward Ered Call in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Ered Call 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 Steward Covered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Ered Call has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Steward Covered go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Steward Covered
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 2.8 times less return on investment than Steward Covered. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 2.49 times less risky than Steward Covered. It trades about 0.06 of its potential returns per unit of risk. Steward Ered Call is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 791.00 in Steward Ered Call on September 3, 2024 and sell it today you would earn a total of 53.00 from holding Steward Ered Call or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Steward Ered Call
Performance |
| Timeline |
| Oklahoma Municipal |
| Steward Ered Call |
Oklahoma Municipal and Steward Covered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Steward Covered
The main advantage of trading using opposite Oklahoma Municipal and Steward Covered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Steward Covered 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 Steward Covered will offset losses from the drop in Steward Covered'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 |
| Steward Covered vs. Dws Government Money | Steward Covered vs. Rbc Funds Trust | Steward Covered vs. John Hancock Money | Steward Covered vs. Transamerica Funds |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |