Correlation Between Oklahoma Municipal and 1290 Smartbeta
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and 1290 Smartbeta 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 1290 Smartbeta 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 1290 Smartbeta Equity, you can compare the effects of market volatilities on Oklahoma Municipal and 1290 Smartbeta 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 1290 Smartbeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and 1290 Smartbeta.
Diversification Opportunities for Oklahoma Municipal and 1290 Smartbeta
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oklahoma and 1290 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and 1290 Smartbeta Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 Smartbeta Equity 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 1290 Smartbeta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 Smartbeta Equity has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and 1290 Smartbeta go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and 1290 Smartbeta
If you would invest 1,049 in Oklahoma Municipal Fund on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Oklahoma Municipal Fund or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. 1290 Smartbeta Equity
Performance |
| Timeline |
| Oklahoma Municipal |
| 1290 Smartbeta Equity |
Oklahoma Municipal and 1290 Smartbeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and 1290 Smartbeta
The main advantage of trading using opposite Oklahoma Municipal and 1290 Smartbeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, 1290 Smartbeta 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 1290 Smartbeta will offset losses from the drop in 1290 Smartbeta's 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 |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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