Correlation Between 1919 Financial and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both 1919 Financial 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 1919 Financial and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1919 Financial Services and Oklahoma Municipal Fund, you can compare the effects of market volatilities on 1919 Financial 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 1919 Financial with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1919 Financial and Oklahoma Municipal.
Diversification Opportunities for 1919 Financial and Oklahoma Municipal
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 1919 and Oklahoma is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding 1919 Financial Services and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and 1919 Financial 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 1919 Financial Services 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 1919 Financial i.e., 1919 Financial and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between 1919 Financial and Oklahoma Municipal
Assuming the 90 days horizon 1919 Financial Services is expected to generate 4.06 times more return on investment than Oklahoma Municipal. However, 1919 Financial is 4.06 times more volatile than Oklahoma Municipal Fund. It trades about 0.26 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 2,963 in 1919 Financial Services on September 3, 2024 and sell it today you would earn a total of 466.00 from holding 1919 Financial Services or generate 15.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1919 Financial Services vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| 1919 Financial Services |
| Oklahoma Municipal |
1919 Financial and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1919 Financial and Oklahoma Municipal
The main advantage of trading using opposite 1919 Financial and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1919 Financial 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.| 1919 Financial vs. Gabelli Global Financial | 1919 Financial vs. Mesirow Financial Small | 1919 Financial vs. Icon Financial Fund | 1919 Financial vs. Prudential Jennison Financial |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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