Correlation Between Georgia Tax-free and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Georgia Tax-free 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 Georgia Tax-free and Oakmark International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Georgia Tax Free Bond and Oakmark International Fund, you can compare the effects of market volatilities on Georgia Tax-free 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 Georgia Tax-free with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Georgia Tax-free and Oakmark International.
Diversification Opportunities for Georgia Tax-free and Oakmark International
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Georgia and Oakmark is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Georgia Tax Free Bond and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International and Georgia Tax-free 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 Georgia Tax Free Bond 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 Georgia Tax-free i.e., Georgia Tax-free and Oakmark International go up and down completely randomly.
Pair Corralation between Georgia Tax-free and Oakmark International
Assuming the 90 days horizon Georgia Tax-free is expected to generate 14.33 times less return on investment than Oakmark International. But when comparing it to its historical volatility, Georgia Tax Free Bond is 3.91 times less risky than Oakmark International. It trades about 0.06 of its potential returns per unit of risk. Oakmark International Fund is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,477 in Oakmark International Fund on October 24, 2024 and sell it today you would earn a total of 100.00 from holding Oakmark International Fund or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Georgia Tax Free Bond vs. Oakmark International Fund
Performance |
| Timeline |
| Georgia Tax Free |
| Oakmark International |
Georgia Tax-free and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Georgia Tax-free and Oakmark International
The main advantage of trading using opposite Georgia Tax-free and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Georgia Tax-free 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.| Georgia Tax-free vs. Artisan Developing World | Georgia Tax-free vs. Investec Emerging Markets | Georgia Tax-free vs. Jhancock Diversified Macro | Georgia Tax-free vs. T Rowe Price |
| Oakmark International vs. Ab Global Bond | Oakmark International vs. Alliancebernstein Global Highome | Oakmark International vs. Investec Global Franchise | Oakmark International vs. Gmo Global Equity |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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