Correlation Between Oklahoma College and Putnam International

Can any of the company-specific risk be diversified away by investing in both Oklahoma College and Putnam International 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 College and Putnam International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oklahoma College Savings and Putnam International Capital, you can compare the effects of market volatilities on Oklahoma College and Putnam International 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 College with a short position of Putnam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma College and Putnam International.

Diversification Opportunities for Oklahoma College and Putnam International

-0.37

Correlation Coefficient

Oklahoma College  Putnam International

Very good diversification

The 3 months correlation between Oklahoma and Putnam is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Putnam International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam International and Oklahoma College 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 College Savings are associated (or correlated) with Putnam International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam International has no effect on the direction of Oklahoma College i.e., Oklahoma College and Putnam International go up and down completely randomly.

Pair Corralation between Oklahoma College and Putnam International

Assuming the 90 days horizon Oklahoma College Savings is expected to generate 1.4 times more return on investment than Putnam International. However, Oklahoma College is 1.4 times more volatile than Putnam International Capital. It trades about 0.14 of its potential returns per unit of risk. Putnam International Capital is currently generating about -0.07 per unit of risk. If you would invest  1,675  in Oklahoma College Savings on September 4, 2024 and sell it today you would earn a total of  163.00  from holding Oklahoma College Savings or generate 9.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Oklahoma College Savings  vs.  Putnam International Capital

Oklahoma College Savings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oklahoma College Savings are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Oklahoma College may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Putnam International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Putnam International Capital has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Putnam International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oklahoma College and Putnam International

The main advantage of trading using opposite Oklahoma College and Putnam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma College position performs unexpectedly, Putnam International 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 Putnam International will offset losses from the drop in Putnam International's long position.

The idea behind Oklahoma College Savings and Putnam International Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.