Correlation Between Oklahoma Municipal and Aambahl Gaynor

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

By analyzing existing cross correlation between Oklahoma Municipal Fund and Aambahl Gaynor Income, you can compare the effects of market volatilities on Oklahoma Municipal and Aambahl Gaynor 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 Municipal with a short position of Aambahl Gaynor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Aambahl Gaynor.

Diversification Opportunities for Oklahoma Municipal and Aambahl Gaynor

-0.15

Correlation Coefficient

Oklahoma Municipal  Aambahl Gaynor

Good diversification

The 3 months correlation between Oklahoma and Aambahl is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Aambahl Gaynor Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aambahl Gaynor Income and Oklahoma Municipal 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 Municipal Fund are associated (or correlated) with Aambahl Gaynor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aambahl Gaynor Income has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Aambahl Gaynor go up and down completely randomly.

Pair Corralation between Oklahoma Municipal and Aambahl Gaynor

Assuming the 90 days horizon Oklahoma Municipal is expected to generate 4.62 times less return on investment than Aambahl Gaynor. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 2.58 times less risky than Aambahl Gaynor. It trades about 0.04 of its potential returns per unit of risk. Aambahl Gaynor Income is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,233  in Aambahl Gaynor Income on September 12, 2024 and sell it today you would earn a total of  415.00  from holding Aambahl Gaynor Income or generate 18.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.72%
Values	Daily Returns

Oklahoma Municipal Fund  vs.  Aambahl Gaynor Income

Oklahoma Municipal

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oklahoma Municipal Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Oklahoma Municipal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aambahl Gaynor Income

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aambahl Gaynor Income are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Aambahl Gaynor 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 Municipal and Aambahl Gaynor

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

The idea behind Oklahoma Municipal Fund and Aambahl Gaynor Income 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..