Correlation Between Federated Ohio and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Federated Ohio and Oklahoma Municipal 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 Federated Ohio and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Ohio Municipal and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Federated Ohio and Oklahoma Municipal 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 Federated Ohio with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Ohio and Oklahoma Municipal.
Diversification Opportunities for Federated Ohio and Oklahoma Municipal
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Oklahoma is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Federated Ohio Municipal and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and Federated Ohio 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 Federated Ohio Municipal are associated (or correlated) with Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Federated Ohio i.e., Federated Ohio and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Federated Ohio and Oklahoma Municipal
Assuming the 90 days horizon Federated Ohio Municipal is expected to generate 0.93 times more return on investment than Oklahoma Municipal. However, Federated Ohio Municipal is 1.07 times less risky than Oklahoma Municipal. It trades about 0.06 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.04 per unit of risk. If you would invest 980.00 in Federated Ohio Municipal on September 3, 2024 and sell it today you would earn a total of 70.00 from holding Federated Ohio Municipal or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Ohio Municipal vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Federated Ohio Municipal |
| Oklahoma Municipal |
Federated Ohio and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Ohio and Oklahoma Municipal
The main advantage of trading using opposite Federated Ohio and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Ohio position performs unexpectedly, Oklahoma Municipal 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| Federated Ohio vs. Gmo Resources | Federated Ohio vs. Fidelity Advisor Energy | Federated Ohio vs. Calvert Global Energy | Federated Ohio vs. Energy Basic Materials |
| Oklahoma Municipal vs. Limited Term Tax | Oklahoma Municipal vs. Calvert Short Duration | Oklahoma Municipal vs. Federated Short Term Income | Oklahoma Municipal vs. Jhancock Short Duration |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets |