Correlation Between Kopernik Global and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Kopernik 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 Kopernik 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 Kopernik Global All Cap and Oakmark International Small, you can compare the effects of market volatilities on Kopernik 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 Kopernik Global with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kopernik Global and Oakmark International.
Diversification Opportunities for Kopernik Global and Oakmark International
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kopernik and Oakmark is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kopernik Global All Cap and Oakmark International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International and Kopernik 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 Kopernik Global All Cap 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 Kopernik Global i.e., Kopernik Global and Oakmark International go up and down completely randomly.
Pair Corralation between Kopernik Global and Oakmark International
Assuming the 90 days horizon Kopernik Global All Cap is expected to generate 0.83 times more return on investment than Oakmark International. However, Kopernik Global All Cap is 1.21 times less risky than Oakmark International. It trades about -0.11 of its potential returns per unit of risk. Oakmark International Small is currently generating about -0.12 per unit of risk. If you would invest 1,250 in Kopernik Global All Cap on September 1, 2024 and sell it today you would lose (22.00) from holding Kopernik Global All Cap or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kopernik Global All Cap vs. Oakmark International Small
Performance |
| Timeline |
| Kopernik Global All |
| Oakmark International |
Kopernik Global and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kopernik Global and Oakmark International
The main advantage of trading using opposite Kopernik Global and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kopernik 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.| Kopernik Global vs. Kopernik Global All Cap | Kopernik Global vs. Kopernik International Fund | Kopernik Global vs. Thrivent High Yield | Kopernik Global vs. Gateway Equity Call |
| Oakmark International vs. Baillie Gifford Health | Oakmark International vs. Delaware Healthcare Fund | Oakmark International vs. Eventide Healthcare Life | Oakmark International vs. The Gabelli Healthcare |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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