Correlation Between Oakmark Global and Oakmark Fund
Can any of the company-specific risk be diversified away by investing in both Oakmark Global 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 Global 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 Global Select and Oakmark Fund R6, you can compare the effects of market volatilities on Oakmark Global 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 Global with a short position of Oakmark Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Global and Oakmark Fund.
Diversification Opportunities for Oakmark Global and Oakmark Fund
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oakmark and Oakmark is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Global Select and Oakmark Fund R6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Fund R6 and Oakmark Global 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 Global Select 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 R6 has no effect on the direction of Oakmark Global i.e., Oakmark Global and Oakmark Fund go up and down completely randomly.
Pair Corralation between Oakmark Global and Oakmark Fund
Assuming the 90 days horizon Oakmark Global is expected to generate 2.01 times less return on investment than Oakmark Fund. But when comparing it to its historical volatility, Oakmark Global Select is 1.15 times less risky than Oakmark Fund. It trades about 0.06 of its potential returns per unit of risk. Oakmark Fund R6 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,852 in Oakmark Fund R6 on September 3, 2024 and sell it today you would earn a total of 5,458 from holding Oakmark Fund R6 or generate 50.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark Global Select vs. Oakmark Fund R6
Performance |
| Timeline |
| Oakmark Global Select |
| Oakmark Fund R6 |
Oakmark Global and Oakmark Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Global and Oakmark Fund
The main advantage of trading using opposite Oakmark Global and Oakmark Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Global 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.| Oakmark Global vs. Hennessy Nerstone Mid | Oakmark Global vs. Columbia Small Cap | Oakmark Global vs. Vanguard Small Cap Value | Oakmark Global vs. Victory Rs Partners |
| Oakmark Fund vs. Science Technology Fund | Oakmark Fund vs. Hennessy Technology Fund | Oakmark Fund vs. Ivy Science And | Oakmark Fund vs. Dreyfus Technology Growth |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |