Correlation Between Tiaa Cref and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref 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 Tiaa Cref and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref High Yield Fund and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Tiaa Cref 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 Tiaa Cref with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Oklahoma Municipal.
Diversification Opportunities for Tiaa Cref and Oklahoma Municipal
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tiaa and Oklahoma is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref High Yield Fund and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and Tiaa Cref 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 Tiaa Cref High Yield Fund 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 Tiaa Cref i.e., Tiaa Cref and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Tiaa Cref and Oklahoma Municipal
Assuming the 90 days horizon Tiaa Cref High Yield Fund is expected to generate 0.98 times more return on investment than Oklahoma Municipal. However, Tiaa Cref High Yield Fund is 1.02 times less risky than Oklahoma Municipal. It trades about 0.21 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.08 per unit of risk. If you would invest 787.00 in Tiaa Cref High Yield Fund on September 14, 2024 and sell it today you would earn a total of 106.00 from holding Tiaa Cref High Yield Fund or generate 13.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref High Yield Fund vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Tiaa Cref High |
| Oklahoma Municipal |
Tiaa Cref and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and Oklahoma Municipal
The main advantage of trading using opposite Tiaa Cref and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref 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.| Tiaa Cref vs. Oklahoma Municipal Fund | Tiaa Cref vs. Franklin High Yield | Tiaa Cref vs. Ishares Municipal Bond | Tiaa Cref vs. T Rowe Price |
| Oklahoma Municipal vs. Forum Real Estate | Oklahoma Municipal vs. Columbia Real Estate | Oklahoma Municipal vs. Pender Real Estate | Oklahoma Municipal vs. Prudential Real Estate |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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