Correlation Between Global Managed and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Global Managed and Oklahoma Municipal 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 Global Managed and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Managed Volatility and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Global Managed and Oklahoma Municipal 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 Global Managed with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Managed and Oklahoma Municipal.
Diversification Opportunities for Global Managed and Oklahoma Municipal
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GLOBAL and Oklahoma is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Global Managed Volatility and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and Global 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 Global Managed Volatility are associated (or correlated) with Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Global Managed i.e., Global Managed and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Global Managed and Oklahoma Municipal
Assuming the 90 days horizon Global Managed Volatility is expected to under-perform the Oklahoma Municipal. In addition to that, Global Managed is 3.02 times more volatile than Oklahoma Municipal Fund. It trades about -0.01 of its total potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.03 per unit of volatility. If you would invest 1,036 in Oklahoma Municipal Fund on December 21, 2024 and sell it today you would earn a total of 4.00 from holding Oklahoma Municipal Fund or generate 0.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Global Managed Volatility vs. Oklahoma Municipal Fund
Performance |
Timeline |
Global Managed Volatility |
Oklahoma Municipal |
Global Managed and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Managed and Oklahoma Municipal
The main advantage of trading using opposite Global Managed and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Managed position performs unexpectedly, Oklahoma Municipal 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.Global Managed vs. International Investors Gold | Global Managed vs. Invesco Gold Special | Global Managed vs. Gabelli Gold Fund | Global Managed vs. First Eagle Gold |
Oklahoma Municipal vs. Morgan Stanley Emerging | Oklahoma Municipal vs. T Rowe Price | Oklahoma Municipal vs. Chartwell Short Duration | Oklahoma Municipal vs. Ambrus Core Bond |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |