Correlation Between Oakmark Select and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both Oakmark Select and Kopernik Global 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 Select and Kopernik Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Select Fund and Kopernik Global All Cap, you can compare the effects of market volatilities on Oakmark Select and Kopernik Global 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 Select with a short position of Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Select and Kopernik Global.
Diversification Opportunities for Oakmark Select and Kopernik Global
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oakmark and Kopernik is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Select Fund and Kopernik Global All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik Global All and Oakmark Select 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 Select Fund are associated (or correlated) with Kopernik Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik Global All has no effect on the direction of Oakmark Select i.e., Oakmark Select and Kopernik Global go up and down completely randomly.
Pair Corralation between Oakmark Select and Kopernik Global
Assuming the 90 days horizon Oakmark Select Fund is expected to generate 1.34 times more return on investment than Kopernik Global. However, Oakmark Select is 1.34 times more volatile than Kopernik Global All Cap. It trades about 0.08 of its potential returns per unit of risk. Kopernik Global All Cap is currently generating about 0.03 per unit of risk. If you would invest 6,470 in Oakmark Select Fund on September 12, 2024 and sell it today you would earn a total of 1,870 from holding Oakmark Select Fund or generate 28.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark Select Fund vs. Kopernik Global All Cap
Performance |
| Timeline |
| Oakmark Select |
| Kopernik Global All |
Oakmark Select and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Select and Kopernik Global
The main advantage of trading using opposite Oakmark Select and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Select position performs unexpectedly, Kopernik Global 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 Kopernik Global will offset losses from the drop in Kopernik Global's long position.| Oakmark Select vs. Oakmark Fund Investor | Oakmark Select vs. Oakmark International Fund | Oakmark Select vs. Oakmark Global Fund | Oakmark Select vs. Oakmark Equity And |
| Kopernik Global vs. Oakmark International Fund | Kopernik Global vs. Oakmark Global Fund | Kopernik Global vs. Oakmark Select Fund | Kopernik Global vs. Oakmark Global Select |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |