Correlation Between Bbh Intermediate and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Oakmark 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 Bbh Intermediate and Oakmark International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Oakmark International Fund, you can compare the effects of market volatilities on Bbh Intermediate and Oakmark 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 Bbh Intermediate with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Oakmark International.
Diversification Opportunities for Bbh Intermediate and Oakmark International
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bbh and Oakmark is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Oakmark International go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Oakmark International
Assuming the 90 days horizon Bbh Intermediate is expected to generate 40.18 times less return on investment than Oakmark International. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 5.99 times less risky than Oakmark International. It trades about 0.03 of its potential returns per unit of risk. Oakmark International Fund is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,477 in Oakmark International Fund on October 24, 2024 and sell it today you would earn a total of 100.00 from holding Oakmark International Fund or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Oakmark International Fund
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Oakmark International |
Bbh Intermediate and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Oakmark International
The main advantage of trading using opposite Bbh Intermediate and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Oakmark 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 Oakmark International will offset losses from the drop in Oakmark International's long position.| Bbh Intermediate vs. Enhanced Fixed Income | Bbh Intermediate vs. Siit Equity Factor | Bbh Intermediate vs. Gmo Global Equity | Bbh Intermediate vs. T Rowe Price |
| Oakmark International vs. Ab Global Bond | Oakmark International vs. Alliancebernstein Global Highome | Oakmark International vs. Investec Global Franchise | Oakmark International vs. Gmo Global Equity |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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