Correlation Between Oakhurst Strategic and Cmg Ultra

Can any of the company-specific risk be diversified away by investing in both Oakhurst Strategic and Cmg Ultra 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 Oakhurst Strategic and Cmg Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oakhurst Strategic Defined and Cmg Ultra Short, you can compare the effects of market volatilities on Oakhurst Strategic and Cmg Ultra 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 Oakhurst Strategic with a short position of Cmg Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakhurst Strategic and Cmg Ultra.

Diversification Opportunities for Oakhurst Strategic and Cmg Ultra

-0.06

Correlation Coefficient

Oakhurst Strategic  Cmg Ultra

Good diversification

The 3 months correlation between Oakhurst and Cmg is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Oakhurst Strategic Defined and Cmg Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cmg Ultra Short and Oakhurst Strategic 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 Oakhurst Strategic Defined are associated (or correlated) with Cmg Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cmg Ultra Short has no effect on the direction of Oakhurst Strategic i.e., Oakhurst Strategic and Cmg Ultra go up and down completely randomly.

Pair Corralation between Oakhurst Strategic and Cmg Ultra

If you would invest  927.00  in Cmg Ultra Short on October 8, 2024 and sell it today you would earn a total of  0.00  from holding Cmg Ultra Short or generate 0.0% return on investment over 90 days.

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

Oakhurst Strategic Defined  vs.  Cmg Ultra Short

Oakhurst Strategic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oakhurst Strategic Defined has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Cmg Ultra Short

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cmg Ultra Short are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Cmg Ultra is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oakhurst Strategic and Cmg Ultra

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

The idea behind Oakhurst Strategic Defined and Cmg Ultra Short 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.