Correlation Between Oakmark International and Oakmark Fund

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Oakmark International and Oakmark Fund 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 Oakmark Fund 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 Oakmark Fund Advisor, you can compare the effects of market volatilities on Oakmark International and Oakmark Fund 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 Oakmark Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Oakmark Fund.

Diversification Opportunities for Oakmark International and Oakmark Fund

-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Oakmark and Oakmark is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Fund and Oakmark Fund Advisor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Fund Advisor 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 Oakmark Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Fund Advisor has no effect on the direction of Oakmark International i.e., Oakmark International and Oakmark Fund go up and down completely randomly.

Pair Corralation between Oakmark International and Oakmark Fund

Assuming the 90 days horizon Oakmark International is expected to generate 4.7 times less return on investment than Oakmark Fund. In addition to that, Oakmark International is 1.12 times more volatile than Oakmark Fund Advisor. It trades about 0.03 of its total potential returns per unit of risk. Oakmark Fund Advisor is currently generating about 0.15 per unit of volatility. If you would invest  11,447  in Oakmark Fund Advisor on August 29, 2024 and sell it today you would earn a total of  4,801  from holding Oakmark Fund Advisor or generate 41.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Oakmark International Fund  vs.  Oakmark Fund Advisor

 Performance 
       Timeline  
Oakmark International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oakmark International Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Oakmark International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Oakmark Fund Advisor 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Oakmark Fund Advisor are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Oakmark Fund may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Oakmark International and Oakmark Fund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oakmark International and Oakmark Fund

The main advantage of trading using opposite Oakmark International and Oakmark Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, Oakmark Fund 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 Oakmark Fund will offset losses from the drop in Oakmark Fund's long position.
The idea behind Oakmark International Fund and Oakmark Fund Advisor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Equity Valuation
Check real value of public entities based on technical and fundamental data
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format