Correlation Between Oklahoma College and Meridian Growth

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

Diversification Opportunities for Oklahoma College and Meridian Growth

-0.42

Correlation Coefficient

Oklahoma College  Meridian Growth

Very good diversification

The 3 months correlation between Oklahoma and Meridian is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma College Savings and Meridian Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Growth 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 Meridian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Growth has no effect on the direction of Oklahoma College i.e., Oklahoma College and Meridian Growth go up and down completely randomly.

Pair Corralation between Oklahoma College and Meridian Growth

Assuming the 90 days horizon Oklahoma College Savings is expected to under-perform the Meridian Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oklahoma College Savings is 3.58 times less risky than Meridian Growth. The mutual fund trades about -0.08 of its potential returns per unit of risk. The Meridian Growth Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,606  in Meridian Growth Fund on September 13, 2024 and sell it today you would earn a total of  213.00  from holding Meridian Growth Fund or generate 5.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Oklahoma College Savings  vs.  Meridian Growth Fund

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.

Meridian Growth

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Meridian Growth Fund are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Meridian Growth 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 Meridian Growth

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

The idea behind Oklahoma College Savings and Meridian Growth 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..