Correlation Between Oakmark Fund and Oakmark Equity
Can any of the company-specific risk be diversified away by investing in both Oakmark Fund and Oakmark Equity 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 Equity 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 Equity And, you can compare the effects of market volatilities on Oakmark Fund and Oakmark Equity 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 Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Fund and Oakmark Equity.
Diversification Opportunities for Oakmark Fund and Oakmark Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oakmark and Oakmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Fund Advisor and Oakmark Equity And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Equity And 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 Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Equity And has no effect on the direction of Oakmark Fund i.e., Oakmark Fund and Oakmark Equity go up and down completely randomly.
Pair Corralation between Oakmark Fund and Oakmark Equity
If you would invest 11,008 in Oakmark Fund Advisor on November 9, 2024 and sell it today you would earn a total of 4,877 from holding Oakmark Fund Advisor or generate 44.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Oakmark Fund Advisor vs. Oakmark Equity And
Performance |
| Timeline |
| Oakmark Fund Advisor |
| Oakmark Equity And |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Oakmark Fund and Oakmark Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Fund and Oakmark Equity
The main advantage of trading using opposite Oakmark Fund and Oakmark Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Fund position performs unexpectedly, Oakmark Equity 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 Equity will offset losses from the drop in Oakmark Equity's long position.| Oakmark Fund vs. Nt International Small Mid | Oakmark Fund vs. Franklin Small Cap | Oakmark Fund vs. Transamerica International Small | Oakmark Fund vs. Rbc Small Cap |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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