Correlation Between Oakhurst Strategic and Quantified Stf

Can any of the company-specific risk be diversified away by investing in both Oakhurst Strategic and Quantified Stf 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 Quantified Stf 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 Quantified Stf Fund, you can compare the effects of market volatilities on Oakhurst Strategic and Quantified Stf 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 Quantified Stf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakhurst Strategic and Quantified Stf.

Diversification Opportunities for Oakhurst Strategic and Quantified Stf

0.16

Correlation Coefficient

Oakhurst Strategic  Quantified Stf

Average diversification

The 3 months correlation between Oakhurst and Quantified is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Oakhurst Strategic Defined and Quantified Stf Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantified Stf 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 Quantified Stf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantified Stf has no effect on the direction of Oakhurst Strategic i.e., Oakhurst Strategic and Quantified Stf go up and down completely randomly.

Pair Corralation between Oakhurst Strategic and Quantified Stf

Assuming the 90 days horizon Oakhurst Strategic Defined is expected to under-perform the Quantified Stf. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oakhurst Strategic Defined is 1.55 times less risky than Quantified Stf. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Quantified Stf Fund is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,837  in Quantified Stf Fund on September 23, 2024 and sell it today you would earn a total of  103.00  from holding Quantified Stf Fund or generate 5.61% return on investment over 90 days.

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

Oakhurst Strategic Defined  vs.  Quantified Stf Fund

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.

Quantified Stf

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quantified Stf Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Quantified Stf may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Oakhurst Strategic and Quantified Stf

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

The idea behind Oakhurst Strategic Defined and Quantified Stf Fund 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.