Correlation Between Oakmark International and Jhancock Disciplined
Can any of the company-specific risk be diversified away by investing in both Oakmark International and Jhancock Disciplined 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 Jhancock Disciplined 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 Jhancock Disciplined Value, you can compare the effects of market volatilities on Oakmark International and Jhancock Disciplined 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 Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Jhancock Disciplined.
Diversification Opportunities for Oakmark International and Jhancock Disciplined
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oakmark and Jhancock is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Fund and Jhancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined 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 Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of Oakmark International i.e., Oakmark International and Jhancock Disciplined go up and down completely randomly.
Pair Corralation between Oakmark International and Jhancock Disciplined
Assuming the 90 days horizon Oakmark International Fund is expected to under-perform the Jhancock Disciplined. In addition to that, Oakmark International is 1.31 times more volatile than Jhancock Disciplined Value. It trades about -0.04 of its total potential returns per unit of risk. Jhancock Disciplined Value is currently generating about 0.17 per unit of volatility. If you would invest 2,530 in Jhancock Disciplined Value on September 2, 2024 and sell it today you would earn a total of 229.00 from holding Jhancock Disciplined Value or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark International Fund vs. Jhancock Disciplined Value
Performance |
| Timeline |
| Oakmark International |
| Jhancock Disciplined |
Oakmark International and Jhancock Disciplined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and Jhancock Disciplined
The main advantage of trading using opposite Oakmark International and Jhancock Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, Jhancock Disciplined 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 Jhancock Disciplined will offset losses from the drop in Jhancock Disciplined'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 |
| Jhancock Disciplined vs. Davenport Small Cap | Jhancock Disciplined vs. Blackrock Sm Cap | Jhancock Disciplined vs. The Gabelli Small | Jhancock Disciplined vs. Principal Lifetime Hybrid |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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