Correlation Between Oakmark Fund and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Oakmark Fund and Oakmark International 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 Oakmark International 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 Oakmark International Fund, you can compare the effects of market volatilities on Oakmark Fund and Oakmark International 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 Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Fund and Oakmark International.
Diversification Opportunities for Oakmark Fund and Oakmark International
-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 Fund Advisor and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International 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 Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Oakmark Fund i.e., Oakmark Fund and Oakmark International go up and down completely randomly.
Pair Corralation between Oakmark Fund and Oakmark International
Assuming the 90 days horizon Oakmark Fund Advisor is expected to generate 0.86 times more return on investment than Oakmark International. However, Oakmark Fund Advisor is 1.17 times less risky than Oakmark International. It trades about 0.13 of its potential returns per unit of risk. Oakmark International Fund is currently generating about -0.04 per unit of risk. If you would invest 14,103 in Oakmark Fund Advisor on August 29, 2024 and sell it today you would earn a total of 2,172 from holding Oakmark Fund Advisor or generate 15.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark Fund Advisor vs. Oakmark International Fund
Performance |
| Timeline |
| Oakmark Fund Advisor |
| Oakmark International |
Oakmark Fund and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Fund and Oakmark International
The main advantage of trading using opposite Oakmark Fund and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Fund position performs unexpectedly, Oakmark International 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 International will offset losses from the drop in Oakmark International's long position.| Oakmark Fund vs. Dodge Cox Stock | Oakmark Fund vs. American Mutual Fund | Oakmark Fund vs. American Funds American | Oakmark Fund vs. American Funds American |
| Oakmark International vs. T Rowe Price | Oakmark International vs. Massmutual Premier Global | Oakmark International vs. Blue Current Global | Oakmark International vs. Kinetics Global Fund |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |