Correlation Between American Mutual and Oakmark Fund
Can any of the company-specific risk be diversified away by investing in both American Mutual and Oakmark Fund 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 American Mutual and Oakmark Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Mutual Fund and Oakmark Fund Advisor, you can compare the effects of market volatilities on American Mutual and Oakmark Fund 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 American Mutual with a short position of Oakmark Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Oakmark Fund.
Diversification Opportunities for American Mutual and Oakmark Fund
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Oakmark is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Oakmark Fund Advisor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Fund Advisor and American Mutual 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 American Mutual Fund are associated (or correlated) with Oakmark Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Fund Advisor has no effect on the direction of American Mutual i.e., American Mutual and Oakmark Fund go up and down completely randomly.
Pair Corralation between American Mutual and Oakmark Fund
Assuming the 90 days horizon American Mutual is expected to generate 5.89 times less return on investment than Oakmark Fund. But when comparing it to its historical volatility, American Mutual Fund is 1.66 times less risky than Oakmark Fund. It trades about 0.06 of its potential returns per unit of risk. Oakmark Fund Advisor is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 15,237 in Oakmark Fund Advisor on August 26, 2024 and sell it today you would earn a total of 779.00 from holding Oakmark Fund Advisor or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Mutual Fund vs. Oakmark Fund Advisor
Performance |
| Timeline |
| American Mutual |
| Oakmark Fund Advisor |
American Mutual and Oakmark Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and Oakmark Fund
The main advantage of trading using opposite American Mutual and Oakmark Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, Oakmark Fund 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 Oakmark Fund will offset losses from the drop in Oakmark Fund's long position.| American Mutual vs. Maryland Short Term Tax Free | American Mutual vs. Jhancock Short Duration | American Mutual vs. Angel Oak Ultrashort | American Mutual vs. Rbc Short Duration |
| Oakmark Fund vs. Oakmark Select Fund | Oakmark Fund vs. Oakmark International Fund | Oakmark Fund vs. Oakmark Equity And | Oakmark Fund vs. Oakmark Global Fund |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |