Correlation Between Oakmark Select and Dunham High
Can any of the company-specific risk be diversified away by investing in both Oakmark Select and Dunham 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 Select and Dunham High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Select and Dunham High Yield, you can compare the effects of market volatilities on Oakmark Select and Dunham 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 Select with a short position of Dunham High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Select and Dunham High.
Diversification Opportunities for Oakmark Select and Dunham High
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oakmark and Dunham is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Select and Dunham High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham High Yield and Oakmark Select 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 Select are associated (or correlated) with Dunham High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham High Yield has no effect on the direction of Oakmark Select i.e., Oakmark Select and Dunham High go up and down completely randomly.
Pair Corralation between Oakmark Select and Dunham High
Assuming the 90 days horizon Oakmark Select is expected to generate 3.91 times more return on investment than Dunham High. However, Oakmark Select is 3.91 times more volatile than Dunham High Yield. It trades about 0.1 of its potential returns per unit of risk. Dunham High Yield is currently generating about 0.13 per unit of risk. If you would invest 5,065 in Oakmark Select on September 4, 2024 and sell it today you would earn a total of 3,404 from holding Oakmark Select or generate 67.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark Select vs. Dunham High Yield
Performance |
| Timeline |
| Oakmark Select |
| Dunham High Yield |
Oakmark Select and Dunham High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Select and Dunham High
The main advantage of trading using opposite Oakmark Select and Dunham High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Select position performs unexpectedly, Dunham 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 Dunham High will offset losses from the drop in Dunham High's long position.| Oakmark Select vs. Touchstone Small Cap | Oakmark Select vs. Chartwell Small Cap | Oakmark Select vs. The Hartford Small | Oakmark Select vs. Small Cap Value |
| Dunham High vs. Jpmorgan Emerging Markets | Dunham High vs. Dodge Cox Emerging | Dunham High vs. Growth Strategy Fund | Dunham High vs. Ep Emerging Markets |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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