Correlation Between Oklahoma Municipal and Ab All

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

Diversification Opportunities for Oklahoma Municipal and Ab All

OklahomaAMTOXDiversified AwayOklahomaAMTOXDiversified Away100%
0.51
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Oklahoma and AMTOX is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Ab All Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab All Market 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 Ab All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab All Market has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Ab All go up and down completely randomly.

Pair Corralation between Oklahoma Municipal and Ab All

Assuming the 90 days horizon Oklahoma Municipal Fund is expected to under-perform the Ab All. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oklahoma Municipal Fund is 2.07 times less risky than Ab All. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Ab All Market is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  900.00  in Ab All Market on November 19, 2024 and sell it today you would earn a total of  24.00  from holding Ab All Market or generate 2.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Oklahoma Municipal Fund  vs.  Ab All Market

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5-4-3-2-101
JavaScript chart by amCharts 3.21.15OKMUX AMTOX
       Timeline  
Oklahoma Municipal 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Oklahoma Municipal Fund has generated negative risk-adjusted returns adding no value to fund investors. 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.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb10.310.3510.410.4510.510.5510.6
Ab All Market 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ab All Market are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ab All is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb8.68.78.88.999.19.2

Oklahoma Municipal and Ab All Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.79-0.55-0.31-0.0899-0.0069160.07260.260.50.740.98 123456
JavaScript chart by amCharts 3.21.15OKMUX AMTOX
       Returns  

Pair Trading with Oklahoma Municipal and Ab All

The main advantage of trading using opposite Oklahoma Municipal and Ab All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal position performs unexpectedly, Ab All 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 Ab All will offset losses from the drop in Ab All's long position.
The idea behind Oklahoma Municipal Fund and Ab All Market 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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