Correlation Between Arrow Managed and Oakhurst Fixed
Can any of the company-specific risk be diversified away by investing in both Arrow Managed and Oakhurst Fixed 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 Arrow Managed and Oakhurst Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Oakhurst Fixed Income, you can compare the effects of market volatilities on Arrow Managed and Oakhurst Fixed 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 Arrow Managed with a short position of Oakhurst Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Oakhurst Fixed.
Diversification Opportunities for Arrow Managed and Oakhurst Fixed
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Arrow and Oakhurst is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and Oakhurst Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Fixed Income and Arrow Managed 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 Arrow Managed Futures are associated (or correlated) with Oakhurst Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Fixed Income has no effect on the direction of Arrow Managed i.e., Arrow Managed and Oakhurst Fixed go up and down completely randomly.
Pair Corralation between Arrow Managed and Oakhurst Fixed
Assuming the 90 days horizon Arrow Managed Futures is expected to generate 3.79 times more return on investment than Oakhurst Fixed. However, Arrow Managed is 3.79 times more volatile than Oakhurst Fixed Income. It trades about -0.01 of its potential returns per unit of risk. Oakhurst Fixed Income is currently generating about -0.39 per unit of risk. If you would invest 583.00 in Arrow Managed Futures on October 12, 2024 and sell it today you would lose (2.00) from holding Arrow Managed Futures or give up 0.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Arrow Managed Futures vs. Oakhurst Fixed Income
Performance |
Timeline |
Arrow Managed Futures |
Oakhurst Fixed Income |
Arrow Managed and Oakhurst Fixed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arrow Managed and Oakhurst Fixed
The main advantage of trading using opposite Arrow Managed and Oakhurst Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed position performs unexpectedly, Oakhurst Fixed 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 Oakhurst Fixed will offset losses from the drop in Oakhurst Fixed's long position.Arrow Managed vs. Monteagle Enhanced Equity | Arrow Managed vs. Ab Select Equity | Arrow Managed vs. Ab Equity Income | Arrow Managed vs. Greenspring Fund Retail |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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