Correlation Between Siit High and Oakmark Bond
Can any of the company-specific risk be diversified away by investing in both Siit High and Oakmark Bond 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 Siit High and Oakmark Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Oakmark Bond, you can compare the effects of market volatilities on Siit High and Oakmark Bond 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 Siit High with a short position of Oakmark Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Oakmark Bond.
Diversification Opportunities for Siit High and Oakmark Bond
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Oakmark is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Oakmark Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Bond and Siit High 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 Siit High Yield are associated (or correlated) with Oakmark Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Bond has no effect on the direction of Siit High i.e., Siit High and Oakmark Bond go up and down completely randomly.
Pair Corralation between Siit High and Oakmark Bond
Assuming the 90 days horizon Siit High Yield is expected to generate 0.77 times more return on investment than Oakmark Bond. However, Siit High Yield is 1.31 times less risky than Oakmark Bond. It trades about 0.25 of its potential returns per unit of risk. Oakmark Bond is currently generating about 0.08 per unit of risk. If you would invest 671.00 in Siit High Yield on September 14, 2024 and sell it today you would earn a total of 48.00 from holding Siit High Yield or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Siit High Yield vs. Oakmark Bond
Performance |
| Timeline |
| Siit High Yield |
| Oakmark Bond |
Siit High and Oakmark Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Oakmark Bond
The main advantage of trading using opposite Siit High and Oakmark Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Oakmark Bond 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 Bond will offset losses from the drop in Oakmark Bond's long position.| Siit High vs. Artisan High Income | Siit High vs. Sit Emerging Markets | Siit High vs. Sit International Equity | Siit High vs. Stet Intermediate Term |
| Oakmark Bond vs. Dreyfusstandish Global Fixed | Oakmark Bond vs. Ambrus Core Bond | Oakmark Bond vs. Touchstone Premium Yield | Oakmark Bond vs. T Rowe Price |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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