Correlation Between Oklahoma College and Allianzgi International

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

By analyzing existing cross correlation between Oklahoma College Savings and Allianzgi International Small Cap, you can compare the effects of market volatilities on Oklahoma College and Allianzgi International 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 College with a short position of Allianzgi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma College and Allianzgi International.

Diversification Opportunities for Oklahoma College and Allianzgi International

0.85

Correlation Coefficient

Oklahoma College  Allianzgi International

Very poor diversification

The 3 months correlation between Oklahoma and Allianzgi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Allianzgi International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi International and Oklahoma College 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 College Savings are associated (or correlated) with Allianzgi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi International has no effect on the direction of Oklahoma College i.e., Oklahoma College and Allianzgi International go up and down completely randomly.

Pair Corralation between Oklahoma College and Allianzgi International

Assuming the 90 days horizon Oklahoma College Savings is expected to generate 0.42 times more return on investment than Allianzgi International. However, Oklahoma College Savings is 2.39 times less risky than Allianzgi International. It trades about -0.03 of its potential returns per unit of risk. Allianzgi International Small Cap is currently generating about -0.07 per unit of risk. If you would invest  1,018  in Oklahoma College Savings on August 31, 2024 and sell it today you would lose (5.00) from holding Oklahoma College Savings or give up 0.49% of portfolio value over 90 days.

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

Oklahoma College Savings  vs.  Allianzgi International Small

Oklahoma College Savings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oklahoma College Savings has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Oklahoma College is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi International Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Allianzgi International 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 College and Allianzgi International

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

The idea behind Oklahoma College Savings and Allianzgi International Small Cap 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.