Correlation Between Henderson Global and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Henderson Global 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 Henderson Global and Oakmark International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson Global Equity and Oakmark International Fund, you can compare the effects of market volatilities on Henderson Global 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 Henderson Global with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson Global and Oakmark International.
Diversification Opportunities for Henderson Global and Oakmark International
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henderson and Oakmark is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Henderson Global Equity and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International and Henderson Global 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 Henderson Global Equity 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 Henderson Global i.e., Henderson Global and Oakmark International go up and down completely randomly.
Pair Corralation between Henderson Global and Oakmark International
Assuming the 90 days horizon Henderson Global Equity is expected to generate 0.45 times more return on investment than Oakmark International. However, Henderson Global Equity is 2.24 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 -0.1 per unit of risk. If you would invest 612.00 in Henderson Global Equity on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Henderson Global Equity or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Henderson Global Equity vs. Oakmark International Fund
Performance |
| Timeline |
| Henderson Global Equity |
| Oakmark International |
Henderson Global and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson Global and Oakmark International
The main advantage of trading using opposite Henderson Global and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson Global 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.| Henderson Global vs. Baron Emerging Markets | Henderson Global vs. Df Dent Midcap | Henderson Global vs. The Brown Capital | Henderson Global vs. Fidelity International Growth |
| Oakmark International vs. Oakmark International Fund | Oakmark International vs. Oakmark Fund Advisor | Oakmark International vs. Oakmark Select Fund | Oakmark International vs. Oakmark Global Select |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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