Correlation Between Oakmark Fund and Artisan High
Can any of the company-specific risk be diversified away by investing in both Oakmark Fund and Artisan High 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 Fund and Artisan High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Fund Advisor and Artisan High Income, you can compare the effects of market volatilities on Oakmark Fund and Artisan High 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 Fund with a short position of Artisan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Fund and Artisan High.
Diversification Opportunities for Oakmark Fund and Artisan High
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oakmark and Artisan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Fund Advisor and Artisan High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan High Income and Oakmark Fund 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 Fund Advisor are associated (or correlated) with Artisan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan High Income has no effect on the direction of Oakmark Fund i.e., Oakmark Fund and Artisan High go up and down completely randomly.
Pair Corralation between Oakmark Fund and Artisan High
Assuming the 90 days horizon Oakmark Fund Advisor is expected to generate 4.72 times more return on investment than Artisan High. However, Oakmark Fund is 4.72 times more volatile than Artisan High Income. It trades about 0.14 of its potential returns per unit of risk. Artisan High Income is currently generating about 0.24 per unit of risk. If you would invest 14,013 in Oakmark Fund Advisor on September 1, 2024 and sell it today you would earn a total of 2,283 from holding Oakmark Fund Advisor or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Oakmark Fund Advisor vs. Artisan High Income
Performance |
| Timeline |
| Oakmark Fund Advisor |
| Artisan High Income |
Oakmark Fund and Artisan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Fund and Artisan High
The main advantage of trading using opposite Oakmark Fund and Artisan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Fund position performs unexpectedly, Artisan High 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 Artisan High will offset losses from the drop in Artisan High's long position.| Oakmark Fund vs. T Rowe Price | Oakmark Fund vs. Qs Large Cap | Oakmark Fund vs. John Hancock Investment | Oakmark Fund vs. Tax Managed Large Cap |
| Artisan High vs. Artisan Value Income | Artisan High vs. Artisan Developing World | Artisan High vs. Artisan Thematic Fund | Artisan High vs. Artisan Small Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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