Correlation Between Oakmark International and Wasatch Small
Can any of the company-specific risk be diversified away by investing in both Oakmark International and Wasatch Small 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 Wasatch Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark International Small and Wasatch Small Cap, you can compare the effects of market volatilities on Oakmark International and Wasatch Small 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 Wasatch Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Wasatch Small.
Diversification Opportunities for Oakmark International and Wasatch Small
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oakmark and Wasatch is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Small and Wasatch Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Small Cap 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 Small are associated (or correlated) with Wasatch Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Small Cap has no effect on the direction of Oakmark International i.e., Oakmark International and Wasatch Small go up and down completely randomly.
Pair Corralation between Oakmark International and Wasatch Small
Assuming the 90 days horizon Oakmark International is expected to generate 2.32 times less return on investment than Wasatch Small. But when comparing it to its historical volatility, Oakmark International Small is 1.46 times less risky than Wasatch Small. It trades about 0.02 of its potential returns per unit of risk. Wasatch Small Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 807.00 in Wasatch Small Cap on September 20, 2024 and sell it today you would earn a total of 190.00 from holding Wasatch Small Cap or generate 23.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark International Small vs. Wasatch Small Cap
Performance |
| Timeline |
| Oakmark International |
| Wasatch Small Cap |
Oakmark International and Wasatch Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and Wasatch Small
The main advantage of trading using opposite Oakmark International and Wasatch Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, Wasatch Small 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 Wasatch Small will offset losses from the drop in Wasatch Small's long position.| Oakmark International vs. Oakmark International Fund | Oakmark International vs. Oakmark Global Fund | Oakmark International vs. Oakmark Select Fund | Oakmark International vs. Oakmark Global Select |
| Wasatch Small vs. Siit High Yield | Wasatch Small vs. Alpine High Yield | Wasatch Small vs. Msift High Yield | Wasatch Small vs. Gmo High Yield |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |