Correlation Between Oakmark International and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Oakmark International and Cohen Steers 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 Oakmark International and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark International Fund and Cohen Steers Real, you can compare the effects of market volatilities on Oakmark International and Cohen Steers 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 Oakmark International with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Cohen Steers.
Diversification Opportunities for Oakmark International and Cohen Steers
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oakmark and Cohen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Fund and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real and Oakmark International 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 Oakmark International Fund are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Real has no effect on the direction of Oakmark International i.e., Oakmark International and Cohen Steers go up and down completely randomly.
Pair Corralation between Oakmark International and Cohen Steers
Assuming the 90 days horizon Oakmark International Fund is expected to under-perform the Cohen Steers. In addition to that, Oakmark International is 1.2 times more volatile than Cohen Steers Real. It trades about -0.04 of its total potential returns per unit of risk. Cohen Steers Real is currently generating about 0.17 per unit of volatility. If you would invest 1,605 in Cohen Steers Real on August 29, 2024 and sell it today you would earn a total of 308.00 from holding Cohen Steers Real or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark International Fund vs. Cohen Steers Real
Performance |
| Timeline |
| Oakmark International |
| Cohen Steers Real |
Oakmark International and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and Cohen Steers
The main advantage of trading using opposite Oakmark International and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Oakmark International vs. Oakmark Fund Investor | Oakmark International vs. Oakmark Select Fund | Oakmark International vs. Oakmark International Small | Oakmark International vs. Oakmark Global Fund |
| Cohen Steers vs. Franklin Natural Resources | Cohen Steers vs. HUMANA INC | Cohen Steers vs. Aquagold International | Cohen Steers vs. Barloworld Ltd ADR |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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