Correlation Between Osterweis Strategic and Akre Focus
Can any of the company-specific risk be diversified away by investing in both Osterweis Strategic and Akre Focus 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 Osterweis Strategic and Akre Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osterweis Strategic Income and Akre Focus Fund, you can compare the effects of market volatilities on Osterweis Strategic and Akre Focus 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 Osterweis Strategic with a short position of Akre Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osterweis Strategic and Akre Focus.
Diversification Opportunities for Osterweis Strategic and Akre Focus
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osterweis and Akre is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Osterweis Strategic Income and Akre Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akre Focus Fund and Osterweis Strategic 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 Osterweis Strategic Income are associated (or correlated) with Akre Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akre Focus Fund has no effect on the direction of Osterweis Strategic i.e., Osterweis Strategic and Akre Focus go up and down completely randomly.
Pair Corralation between Osterweis Strategic and Akre Focus
Assuming the 90 days horizon Osterweis Strategic is expected to generate 2.55 times less return on investment than Akre Focus. But when comparing it to its historical volatility, Osterweis Strategic Income is 6.11 times less risky than Akre Focus. It trades about 0.28 of its potential returns per unit of risk. Akre Focus Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,357 in Akre Focus Fund on September 2, 2024 and sell it today you would earn a total of 2,227 from holding Akre Focus Fund or generate 41.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osterweis Strategic Income vs. Akre Focus Fund
Performance |
| Timeline |
| Osterweis Strategic |
| Akre Focus Fund |
Osterweis Strategic and Akre Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osterweis Strategic and Akre Focus
The main advantage of trading using opposite Osterweis Strategic and Akre Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osterweis Strategic position performs unexpectedly, Akre Focus 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 Akre Focus will offset losses from the drop in Akre Focus' long position.| Osterweis Strategic vs. Adams Diversified Equity | Osterweis Strategic vs. Principal Lifetime Hybrid | Osterweis Strategic vs. Tiaa Cref Smallmid Cap Equity | Osterweis Strategic vs. Small Cap Stock |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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