Correlation Between Boston Partners and Oakmark Select
Can any of the company-specific risk be diversified away by investing in both Boston Partners and Oakmark Select 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 Boston Partners and Oakmark Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and Oakmark Select Fund, you can compare the effects of market volatilities on Boston Partners and Oakmark Select 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 Boston Partners with a short position of Oakmark Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Oakmark Select.
Diversification Opportunities for Boston Partners and Oakmark Select
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and Oakmark is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and Oakmark Select Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Select and Boston Partners 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 Boston Partners Longshort are associated (or correlated) with Oakmark Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Select has no effect on the direction of Boston Partners i.e., Boston Partners and Oakmark Select go up and down completely randomly.
Pair Corralation between Boston Partners and Oakmark Select
Assuming the 90 days horizon Boston Partners is expected to generate 1.25 times less return on investment than Oakmark Select. But when comparing it to its historical volatility, Boston Partners Longshort is 2.04 times less risky than Oakmark Select. It trades about 0.14 of its potential returns per unit of risk. Oakmark Select Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,995 in Oakmark Select Fund on September 14, 2024 and sell it today you would earn a total of 1,400 from holding Oakmark Select Fund or generate 20.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. Oakmark Select Fund
Performance |
| Timeline |
| Boston Partners Longshort |
| Oakmark Select |
Boston Partners and Oakmark Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Oakmark Select
The main advantage of trading using opposite Boston Partners and Oakmark Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, Oakmark Select 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 Select will offset losses from the drop in Oakmark Select's long position.| Boston Partners vs. Boston Partners Longshort | Boston Partners vs. Blackrock Midcap Index | Boston Partners vs. The Arbitrage Fund | Boston Partners vs. Calamos Market Neutral |
| Oakmark Select vs. Counterpoint Tactical Municipal | Oakmark Select vs. Blrc Sgy Mnp | Oakmark Select vs. Franklin High Yield | Oakmark Select vs. Morningstar Municipal 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |