Correlation Between Oakmark International and General Money
Can any of the company-specific risk be diversified away by investing in both Oakmark International and General Money 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 General Money 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 General Money Market, you can compare the effects of market volatilities on Oakmark International and General Money 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 General Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and General Money.
Diversification Opportunities for Oakmark International and General Money
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oakmark and General is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Small and General Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Money Market 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 General Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Money Market has no effect on the direction of Oakmark International i.e., Oakmark International and General Money go up and down completely randomly.
Pair Corralation between Oakmark International and General Money
If you would invest 100.00 in General Money Market on September 5, 2024 and sell it today you would earn a total of 0.00 from holding General Money Market or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark International Small vs. General Money Market
Performance |
| Timeline |
| Oakmark International |
| General Money Market |
Oakmark International and General Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and General Money
The main advantage of trading using opposite Oakmark International and General Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, General Money 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 General Money will offset losses from the drop in General Money's long position.| Oakmark International vs. General Money Market | Oakmark International vs. Ashmore Emerging Markets | Oakmark International vs. Elfun Government Money | Oakmark International vs. Wt Mutual Fund |
| General Money vs. Ab Global Bond | General Money vs. Qs Global Equity | General Money vs. Mirova Global Green | General Money vs. Artisan Global Unconstrained |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |