Correlation Between Oklahoma Municipal and Victory Special
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Victory Special 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 Victory Special 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 Victory Special Value, you can compare the effects of market volatilities on Oklahoma Municipal and Victory Special 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 Victory Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Victory Special.
Diversification Opportunities for Oklahoma Municipal and Victory Special
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oklahoma and Victory is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Victory Special Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Special Value 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 Victory Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Special Value has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Victory Special go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Victory Special
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 9.74 times less return on investment than Victory Special. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 4.28 times less risky than Victory Special. It trades about 0.02 of its potential returns per unit of risk. Victory Special Value is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,595 in Victory Special Value on November 27, 2024 and sell it today you would earn a total of 524.00 from holding Victory Special Value or generate 20.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Oklahoma Municipal Fund vs. Victory Special Value
Performance |
Timeline |
Oklahoma Municipal |
Victory Special Value |
Oklahoma Municipal and Victory Special Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oklahoma Municipal and Victory Special
The main advantage of trading using opposite Oklahoma Municipal and Victory Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Victory Special 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 Victory Special will offset losses from the drop in Victory Special's long position.Oklahoma Municipal vs. Rbc Short Duration | Oklahoma Municipal vs. Calvert Short Duration | Oklahoma Municipal vs. Transam Short Term Bond | Oklahoma Municipal vs. Ashmore Emerging Markets |
Victory Special vs. Ab Bond Inflation | Victory Special vs. Tiaa Cref Inflation Linked Bond | Victory Special vs. Ab Bond Inflation | Victory Special vs. Aqr Managed Futures |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |