Correlation Between Deutsche Core and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Deutsche Core 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 Deutsche Core and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche E Equity and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Deutsche Core 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 Deutsche Core with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Core and Oklahoma Municipal.
Diversification Opportunities for Deutsche Core and Oklahoma Municipal
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Deutsche and Oklahoma is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche E Equity and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and Deutsche Core 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 Deutsche E Equity 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 Deutsche Core i.e., Deutsche Core and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Deutsche Core and Oklahoma Municipal
Assuming the 90 days horizon Deutsche E Equity is expected to generate 3.63 times more return on investment than Oklahoma Municipal. However, Deutsche Core is 3.63 times more volatile than Oklahoma Municipal Fund. It trades about 0.07 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 2,562 in Deutsche E Equity on December 1, 2024 and sell it today you would earn a total of 888.00 from holding Deutsche E Equity or generate 34.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche E Equity vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Deutsche E Equity |
| Oklahoma Municipal |
Deutsche Core and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Core and Oklahoma Municipal
The main advantage of trading using opposite Deutsche Core and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Core 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.| Deutsche Core vs. Fkhemx | Deutsche Core vs. Fdzbpx | Deutsche Core vs. Arrow Managed Futures | Deutsche Core vs. Fsultx |
| Oklahoma Municipal vs. Ms Global Fixed | Oklahoma Municipal vs. Ab Global Real | Oklahoma Municipal vs. Scharf Global Opportunity | Oklahoma Municipal vs. Rbb Fund Trust |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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