Correlation Between Smead Funds and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Smead Funds and Oakmark International 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 Smead Funds and Oakmark International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smead Funds Trust and Oakmark International Fund, you can compare the effects of market volatilities on Smead Funds and Oakmark International 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 Smead Funds with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smead Funds and Oakmark International.
Diversification Opportunities for Smead Funds and Oakmark International
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Smead and Oakmark is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Smead Funds Trust and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International and Smead Funds 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 Smead Funds Trust are associated (or correlated) with Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Smead Funds i.e., Smead Funds and Oakmark International go up and down completely randomly.
Pair Corralation between Smead Funds and Oakmark International
Assuming the 90 days horizon Smead Funds Trust is expected to generate 1.06 times more return on investment than Oakmark International. However, Smead Funds is 1.06 times more volatile than Oakmark International Fund. It trades about 0.04 of its potential returns per unit of risk. Oakmark International Fund is currently generating about 0.01 per unit of risk. If you would invest 5,178 in Smead Funds Trust on September 4, 2024 and sell it today you would earn a total of 484.00 from holding Smead Funds Trust or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Smead Funds Trust vs. Oakmark International Fund
Performance |
| Timeline |
| Smead Funds Trust |
| Oakmark International |
Smead Funds and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smead Funds and Oakmark International
The main advantage of trading using opposite Smead Funds and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smead Funds position performs unexpectedly, Oakmark International 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 International will offset losses from the drop in Oakmark International's long position.| Smead Funds vs. Smead Value Fund | Smead Funds vs. Smead Value Fund | Smead Funds vs. Smead Value Fund | Smead Funds vs. Smead Value Fund |
| Oakmark International vs. Oakmark International Fund | Oakmark International vs. Oakmark Fund Advisor | Oakmark International vs. Oakmark Select Fund | Oakmark International vs. Oakmark Global Select |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |