Correlation Between Oklahoma Municipal and Gold And
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Gold And 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 Gold And 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 Gold And Precious, you can compare the effects of market volatilities on Oklahoma Municipal and Gold And 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 Gold And. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Gold And.
Diversification Opportunities for Oklahoma Municipal and Gold And
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oklahoma and Gold is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Gold And. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Gold And go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Gold And
Assuming the 90 days horizon Oklahoma Municipal Fund is expected to generate 0.17 times more return on investment than Gold And. However, Oklahoma Municipal Fund is 5.85 times less risky than Gold And. It trades about 0.25 of its potential returns per unit of risk. Gold And Precious is currently generating about -0.3 per unit of risk. If you would invest 1,046 in Oklahoma Municipal Fund on August 30, 2024 and sell it today you would earn a total of 20.00 from holding Oklahoma Municipal Fund or generate 1.91% 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. Gold And Precious
Performance |
| Timeline |
| Oklahoma Municipal |
| Gold And Precious |
Oklahoma Municipal and Gold And Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Gold And
The main advantage of trading using opposite Oklahoma Municipal and Gold And positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Gold And 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 Gold And will offset losses from the drop in Gold And's long position.| Oklahoma Municipal vs. Western Asset Municipal | Oklahoma Municipal vs. Intermediate Term Bond Fund | Oklahoma Municipal vs. Multisector Bond Sma | Oklahoma Municipal vs. Legg Mason Bw |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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