Correlation Between Oakmark International and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Oakmark International and Fidelity Series 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 Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark International and Fidelity Series International, you can compare the effects of market volatilities on Oakmark International and Fidelity Series 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 Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Fidelity Series.
Diversification Opportunities for Oakmark International and Fidelity Series
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oakmark and Fidelity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International and Fidelity Series International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Inte 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 are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Inte has no effect on the direction of Oakmark International i.e., Oakmark International and Fidelity Series go up and down completely randomly.
Pair Corralation between Oakmark International and Fidelity Series
Assuming the 90 days horizon Oakmark International is expected to generate 2.18 times less return on investment than Fidelity Series. In addition to that, Oakmark International is 1.13 times more volatile than Fidelity Series International. It trades about 0.03 of its total potential returns per unit of risk. Fidelity Series International is currently generating about 0.07 per unit of volatility. If you would invest 984.00 in Fidelity Series International on September 3, 2024 and sell it today you would earn a total of 305.00 from holding Fidelity Series International or generate 31.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark International vs. Fidelity Series International
Performance |
| Timeline |
| Oakmark International |
| Fidelity Series Inte |
Oakmark International and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and Fidelity Series
The main advantage of trading using opposite Oakmark International and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, Fidelity Series 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 Fidelity Series will offset losses from the drop in Fidelity Series' long position.| Oakmark International vs. Oakmark International Fund | Oakmark International vs. Oakmark Fund Advisor | Oakmark International vs. Oakmark Select Fund |
| Fidelity Series vs. Oakmark International Fund | Fidelity Series vs. Dodge International Stock | Fidelity Series vs. Oakmark International Fund | Fidelity Series vs. Oakmark International 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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