Correlation Between Oakmark International and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Oakmark International and Elfun Diversified 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 Elfun Diversified 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 Elfun Diversified Fund, you can compare the effects of market volatilities on Oakmark International and Elfun Diversified 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 Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Elfun Diversified.
Diversification Opportunities for Oakmark International and Elfun Diversified
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oakmark and Elfun is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Small and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified 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 Elfun Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Diversified has no effect on the direction of Oakmark International i.e., Oakmark International and Elfun Diversified go up and down completely randomly.
Pair Corralation between Oakmark International and Elfun Diversified
Assuming the 90 days horizon Oakmark International Small is expected to generate 1.99 times more return on investment than Elfun Diversified. However, Oakmark International is 1.99 times more volatile than Elfun Diversified Fund. It trades about 0.15 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.23 per unit of risk. If you would invest 1,963 in Oakmark International Small on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Oakmark International Small or generate 2.04% 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. Elfun Diversified Fund
Performance |
| Timeline |
| Oakmark International |
| Elfun Diversified |
Oakmark International and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and Elfun Diversified
The main advantage of trading using opposite Oakmark International and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, Elfun Diversified 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 Elfun Diversified will offset losses from the drop in Elfun Diversified'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 |
| Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. Ssga International Stock | Elfun Diversified vs. State Street Target |
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.
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