Correlation Between Oklahoma Municipal and Jpmorgan E
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal and Jpmorgan E 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 Jpmorgan E 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 Jpmorgan E Bond, you can compare the effects of market volatilities on Oklahoma Municipal and Jpmorgan E 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 Jpmorgan E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Jpmorgan E.
Diversification Opportunities for Oklahoma Municipal and Jpmorgan E
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oklahoma and Jpmorgan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Jpmorgan E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan E 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 Jpmorgan E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan E Bond has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Jpmorgan E go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Jpmorgan E
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 1.58 times less return on investment than Jpmorgan E. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 1.49 times less risky than Jpmorgan E. It trades about 0.08 of its potential returns per unit of risk. Jpmorgan E Bond is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 950.00 in Jpmorgan E Bond on September 14, 2024 and sell it today you would earn a total of 78.00 from holding Jpmorgan E Bond or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Jpmorgan E Bond
Performance |
| Timeline |
| Oklahoma Municipal |
| Jpmorgan E Bond |
Oklahoma Municipal and Jpmorgan E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Jpmorgan E
The main advantage of trading using opposite Oklahoma Municipal and Jpmorgan E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Jpmorgan E 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 Jpmorgan E will offset losses from the drop in Jpmorgan E's long position.| Oklahoma Municipal vs. Forum Real Estate | Oklahoma Municipal vs. Columbia Real Estate | Oklahoma Municipal vs. Pender Real Estate | Oklahoma Municipal vs. Prudential Real Estate |
| Jpmorgan E vs. Oklahoma Municipal Fund | Jpmorgan E vs. Nuveen Minnesota Municipal | Jpmorgan E vs. T Rowe Price | Jpmorgan E vs. Ab Impact Municipal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |