Correlation Between Oakmark International and Intrepid Endurance
Can any of the company-specific risk be diversified away by investing in both Oakmark International and Intrepid Endurance 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 Intrepid Endurance 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 Intrepid Endurance Fund, you can compare the effects of market volatilities on Oakmark International and Intrepid Endurance 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 Intrepid Endurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Intrepid Endurance.
Diversification Opportunities for Oakmark International and Intrepid Endurance
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oakmark and Intrepid is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Fund and Intrepid Endurance Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Endurance 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 Intrepid Endurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Endurance has no effect on the direction of Oakmark International i.e., Oakmark International and Intrepid Endurance go up and down completely randomly.
Pair Corralation between Oakmark International and Intrepid Endurance
Assuming the 90 days horizon Oakmark International Fund is expected to under-perform the Intrepid Endurance. In addition to that, Oakmark International is 1.28 times more volatile than Intrepid Endurance Fund. It trades about -0.09 of its total potential returns per unit of risk. Intrepid Endurance Fund is currently generating about 0.19 per unit of volatility. If you would invest 1,576 in Intrepid Endurance Fund on September 2, 2024 and sell it today you would earn a total of 49.00 from holding Intrepid Endurance Fund or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Oakmark International Fund vs. Intrepid Endurance Fund
Performance |
| Timeline |
| Oakmark International |
| Intrepid Endurance |
Oakmark International and Intrepid Endurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and Intrepid Endurance
The main advantage of trading using opposite Oakmark International and Intrepid Endurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, Intrepid Endurance 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 Intrepid Endurance will offset losses from the drop in Intrepid Endurance's 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 |
| Intrepid Endurance vs. Amg Yacktman Focused | Intrepid Endurance vs. Intrepid Capital Fund | Intrepid Endurance vs. Heartland Value Plus | Intrepid Endurance vs. Appleseed Fund Appleseed |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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