Correlation Between Oklahoma Municipal and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Ambrus Core 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 Ambrus Core 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 Ambrus Core Bond, you can compare the effects of market volatilities on Oklahoma Municipal and Ambrus Core 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Ambrus Core.
Diversification Opportunities for Oklahoma Municipal and Ambrus Core
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oklahoma and Ambrus is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond 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 Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Ambrus Core go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Ambrus Core
Assuming the 90 days horizon Oklahoma Municipal Fund is expected to generate 1.91 times more return on investment than Ambrus Core. However, Oklahoma Municipal is 1.91 times more volatile than Ambrus Core Bond. It trades about 0.17 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.1 per unit of risk. If you would invest 1,049 in Oklahoma Municipal Fund on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Oklahoma Municipal Fund or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Ambrus Core Bond
Performance |
| Timeline |
| Oklahoma Municipal |
| Ambrus Core Bond |
Oklahoma Municipal and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Ambrus Core
The main advantage of trading using opposite Oklahoma Municipal and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Oklahoma Municipal vs. Colorado Bondshares A | Oklahoma Municipal vs. Virginia Bond Fund | Oklahoma Municipal vs. HUMANA INC | Oklahoma Municipal vs. Aquagold International |
| Ambrus Core vs. Permanent Portfolio Class | Ambrus Core vs. HUMANA INC | Ambrus Core vs. Aquagold International | Ambrus Core vs. Barloworld Ltd ADR |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |