Correlation Between Transamerica Emerging and Oakmark Global
Can any of the company-specific risk be diversified away by investing in both Transamerica Emerging and Oakmark Global 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 Transamerica Emerging and Oakmark Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Emerging Markets and Oakmark Global Fund, you can compare the effects of market volatilities on Transamerica Emerging and Oakmark Global 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 Transamerica Emerging with a short position of Oakmark Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Emerging and Oakmark Global.
Diversification Opportunities for Transamerica Emerging and Oakmark Global
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Transamerica and Oakmark is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Emerging Markets and Oakmark Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Global and Transamerica Emerging 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 Transamerica Emerging Markets are associated (or correlated) with Oakmark Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Global has no effect on the direction of Transamerica Emerging i.e., Transamerica Emerging and Oakmark Global go up and down completely randomly.
Pair Corralation between Transamerica Emerging and Oakmark Global
Assuming the 90 days horizon Transamerica Emerging Markets is expected to generate 1.14 times more return on investment than Oakmark Global. However, Transamerica Emerging is 1.14 times more volatile than Oakmark Global Fund. It trades about 0.06 of its potential returns per unit of risk. Oakmark Global Fund is currently generating about 0.04 per unit of risk. If you would invest 725.00 in Transamerica Emerging Markets on September 14, 2024 and sell it today you would earn a total of 94.00 from holding Transamerica Emerging Markets or generate 12.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Emerging Markets vs. Oakmark Global Fund
Performance |
| Timeline |
| Transamerica Emerging |
| Oakmark Global |
Transamerica Emerging and Oakmark Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Emerging and Oakmark Global
The main advantage of trading using opposite Transamerica Emerging and Oakmark Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Emerging position performs unexpectedly, Oakmark Global 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 Global will offset losses from the drop in Oakmark Global's long position.| Transamerica Emerging vs. Prudential Short Duration | Transamerica Emerging vs. Dreyfus Short Intermediate | Transamerica Emerging vs. Lord Abbett Short | Transamerica Emerging vs. Old Westbury Short Term |
| Oakmark Global vs. Boston Partners Longshort | Oakmark Global vs. Kentucky Tax Free Short To Medium | Oakmark Global vs. Quantitative Longshort Equity | Oakmark Global vs. Rbc Short Duration |
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 Stocks Directory module to find actively traded stocks across global markets.
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