Correlation Between Oakmark Global and Us Government
Can any of the company-specific risk be diversified away by investing in both Oakmark Global and Us Government 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 Global and Us Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Global Select and Us Government Securities, you can compare the effects of market volatilities on Oakmark Global and Us Government 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 Global with a short position of Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Global and Us Government.
Diversification Opportunities for Oakmark Global and Us Government
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oakmark and CGTCX is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Global Select and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities and Oakmark Global 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 Global Select are associated (or correlated) with Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Oakmark Global i.e., Oakmark Global and Us Government go up and down completely randomly.
Pair Corralation between Oakmark Global and Us Government
Assuming the 90 days horizon Oakmark Global Select is expected to generate 1.68 times more return on investment than Us Government. However, Oakmark Global is 1.68 times more volatile than Us Government Securities. It trades about 0.17 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.23 per unit of risk. If you would invest 2,365 in Oakmark Global Select on November 28, 2024 and sell it today you would earn a total of 45.00 from holding Oakmark Global Select or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark Global Select vs. Us Government Securities
Performance |
| Timeline |
| Oakmark Global Select |
| Us Government Securities |
Oakmark Global and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Global and Us Government
The main advantage of trading using opposite Oakmark Global and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Global position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government's long position.| Oakmark Global vs. Us Government Securities | Oakmark Global vs. Virtus Seix Government | Oakmark Global vs. Alpine Ultra Short | Oakmark Global vs. Aig Government Money |
| Us Government vs. Fidelity Sai Inflationfocused | Us Government vs. Short Duration Inflation | Us Government vs. Simt Multi Asset Inflation | Us Government vs. Cref Inflation Linked Bond |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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