Correlation Between Oakmark Fund and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both Oakmark Fund 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 Fund 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 Fund Investor and Kopernik Global All Cap, you can compare the effects of market volatilities on Oakmark Fund 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 Fund with a short position of Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Fund and Kopernik Global.
Diversification Opportunities for Oakmark Fund and Kopernik Global
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oakmark and Kopernik is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Fund Investor 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 Fund 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 Fund Investor 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 Fund i.e., Oakmark Fund and Kopernik Global go up and down completely randomly.
Pair Corralation between Oakmark Fund and Kopernik Global
Assuming the 90 days horizon Oakmark Fund Investor is expected to generate 1.3 times more return on investment than Kopernik Global. However, Oakmark Fund is 1.3 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 0.02 per unit of risk. If you would invest 11,349 in Oakmark Fund Investor on November 1, 2024 and sell it today you would earn a total of 4,681 from holding Oakmark Fund Investor or generate 41.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Oakmark Fund Investor vs. Kopernik Global All Cap
Performance |
| Timeline |
| Oakmark Fund Investor |
| Kopernik Global All |
Oakmark Fund and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Fund and Kopernik Global
The main advantage of trading using opposite Oakmark Fund and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Fund 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 Fund vs. Oakmark Select Fund | Oakmark Fund vs. Oakmark International Fund | Oakmark Fund vs. Oakmark Equity And | Oakmark Fund vs. Oakmark Global Fund |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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