Correlation Between Oakmark International and Ancora/thelen Small-mid
Can any of the company-specific risk be diversified away by investing in both Oakmark International and Ancora/thelen Small-mid 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 Ancora/thelen Small-mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark International Fund and Ancorathelen Small Mid Cap, you can compare the effects of market volatilities on Oakmark International and Ancora/thelen Small-mid 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 Ancora/thelen Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Ancora/thelen Small-mid.
Diversification Opportunities for Oakmark International and Ancora/thelen Small-mid
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oakmark and Ancora/thelen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Fund and Ancorathelen Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ancora/thelen Small-mid 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 Fund are associated (or correlated) with Ancora/thelen Small-mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ancora/thelen Small-mid has no effect on the direction of Oakmark International i.e., Oakmark International and Ancora/thelen Small-mid go up and down completely randomly.
Pair Corralation between Oakmark International and Ancora/thelen Small-mid
Assuming the 90 days horizon Oakmark International Fund is expected to generate 0.68 times more return on investment than Ancora/thelen Small-mid. However, Oakmark International Fund is 1.47 times less risky than Ancora/thelen Small-mid. It trades about 0.17 of its potential returns per unit of risk. Ancorathelen Small Mid Cap is currently generating about -0.05 per unit of risk. If you would invest 2,493 in Oakmark International Fund on November 18, 2024 and sell it today you would earn a total of 251.00 from holding Oakmark International Fund or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark International Fund vs. Ancorathelen Small Mid Cap
Performance |
| Timeline |
| Oakmark International |
| Ancora/thelen Small-mid |
Oakmark International and Ancora/thelen Small-mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and Ancora/thelen Small-mid
The main advantage of trading using opposite Oakmark International and Ancora/thelen Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, Ancora/thelen Small-mid 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 Ancora/thelen Small-mid will offset losses from the drop in Ancora/thelen Small-mid's long position.| Oakmark International vs. T Rowe Price | Oakmark International vs. Tax Managed Large Cap | Oakmark International vs. Enhanced Large Pany | Oakmark International vs. Dodge Cox Stock |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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