Correlation Between Oakmark International and HUMANA
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By analyzing existing cross correlation between Oakmark International Fund and HUMANA INC, you can compare the effects of market volatilities on Oakmark International and HUMANA 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 HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and HUMANA.
Diversification Opportunities for Oakmark International and HUMANA
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oakmark and HUMANA is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Fund and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 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 HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Oakmark International i.e., Oakmark International and HUMANA go up and down completely randomly.
Pair Corralation between Oakmark International and HUMANA
Assuming the 90 days horizon Oakmark International Fund is expected to generate 1.03 times more return on investment than HUMANA. However, Oakmark International is 1.03 times more volatile than HUMANA INC. It trades about -0.09 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.18 per unit of risk. If you would invest 2,649 in Oakmark International Fund on September 2, 2024 and sell it today you would lose (65.00) from holding Oakmark International Fund or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Oakmark International Fund vs. HUMANA INC
Performance |
| Timeline |
| Oakmark International |
| HUMANA INC |
Oakmark International and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and HUMANA
The main advantage of trading using opposite Oakmark International and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA'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 |
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 Stocks Directory module to find actively traded stocks across global markets.
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