Correlation Between Oklahoma College and Wilmington Global

Can any of the company-specific risk be diversified away by investing in both Oklahoma College and Wilmington Global 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 Wilmington Global 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 Wilmington Global Alpha, you can compare the effects of market volatilities on Oklahoma College and Wilmington Global 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 Wilmington Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma College and Wilmington Global.

Diversification Opportunities for Oklahoma College and Wilmington Global

0.76

Correlation Coefficient

Oklahoma College  Wilmington Global

Poor diversification

The 3 months correlation between Oklahoma and Wilmington is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Wilmington Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Global Alpha 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 Wilmington Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Global Alpha has no effect on the direction of Oklahoma College i.e., Oklahoma College and Wilmington Global go up and down completely randomly.

Pair Corralation between Oklahoma College and Wilmington Global

Assuming the 90 days horizon Oklahoma College Savings is expected to generate 0.88 times more return on investment than Wilmington Global. However, Oklahoma College Savings is 1.14 times less risky than Wilmington Global. It trades about 0.32 of its potential returns per unit of risk. Wilmington Global Alpha is currently generating about 0.19 per unit of risk. If you would invest  1,001  in Oklahoma College Savings on December 2, 2024 and sell it today you would earn a total of  34.00  from holding Oklahoma College Savings or generate 3.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Oklahoma College Savings  vs.  Wilmington Global Alpha

Oklahoma College Savings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oklahoma College Savings are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Oklahoma College is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Wilmington Global Alpha

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wilmington Global Alpha has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Wilmington Global 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 Wilmington Global

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

The idea behind Oklahoma College Savings and Wilmington Global Alpha 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.