Correlation Between Chestnut Street and Oakmark Global
Can any of the company-specific risk be diversified away by investing in both Chestnut Street and Oakmark Global 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 Chestnut Street and Oakmark Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chestnut Street Exchange and Oakmark Global Fund, you can compare the effects of market volatilities on Chestnut Street and Oakmark Global 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 Chestnut Street with a short position of Oakmark Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chestnut Street and Oakmark Global.
Diversification Opportunities for Chestnut Street and Oakmark Global
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chestnut and OAKMARK is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Chestnut Street Exchange and Oakmark Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Global and Chestnut Street 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 Chestnut Street Exchange are associated (or correlated) with Oakmark Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Global has no effect on the direction of Chestnut Street i.e., Chestnut Street and Oakmark Global go up and down completely randomly.
Pair Corralation between Chestnut Street and Oakmark Global
Assuming the 90 days horizon Chestnut Street Exchange is expected to generate 0.79 times more return on investment than Oakmark Global. However, Chestnut Street Exchange is 1.27 times less risky than Oakmark Global. It trades about 0.09 of its potential returns per unit of risk. Oakmark Global Fund is currently generating about 0.04 per unit of risk. If you would invest 86,253 in Chestnut Street Exchange on August 26, 2024 and sell it today you would earn a total of 30,461 from holding Chestnut Street Exchange or generate 35.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chestnut Street Exchange vs. Oakmark Global Fund
Performance |
| Timeline |
| Chestnut Street Exchange |
| Oakmark Global |
Chestnut Street and Oakmark Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chestnut Street and Oakmark Global
The main advantage of trading using opposite Chestnut Street and Oakmark Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chestnut Street position performs unexpectedly, Oakmark Global 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 Global will offset losses from the drop in Oakmark Global's long position.| Chestnut Street vs. Aam Select Income | Chestnut Street vs. Fa 529 Aggressive | Chestnut Street vs. Falcon Focus Scv | Chestnut Street vs. Red Oak Technology |
| Oakmark Global vs. Aim Investment Secs | Oakmark Global vs. Chestnut Street Exchange | Oakmark Global vs. Franklin Government Money | Oakmark Global vs. Rbc Funds Trust |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |