Correlation Between Arrow Managed and Oakmark Fund
Can any of the company-specific risk be diversified away by investing in both Arrow Managed and Oakmark Fund 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 Arrow Managed and Oakmark Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Oakmark Fund Institutional, you can compare the effects of market volatilities on Arrow Managed and Oakmark Fund 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 Arrow Managed with a short position of Oakmark Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Oakmark Fund.
Diversification Opportunities for Arrow Managed and Oakmark Fund
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Arrow and Oakmark is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and Oakmark Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Fund Institu and Arrow Managed 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 Arrow Managed Futures are associated (or correlated) with Oakmark Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Fund Institu has no effect on the direction of Arrow Managed i.e., Arrow Managed and Oakmark Fund go up and down completely randomly.
Pair Corralation between Arrow Managed and Oakmark Fund
Assuming the 90 days horizon Arrow Managed Futures is expected to under-perform the Oakmark Fund. In addition to that, Arrow Managed is 1.55 times more volatile than Oakmark Fund Institutional. It trades about -0.02 of its total potential returns per unit of risk. Oakmark Fund Institutional is currently generating about 0.15 per unit of volatility. If you would invest 14,787 in Oakmark Fund Institutional on September 14, 2024 and sell it today you would earn a total of 1,141 from holding Oakmark Fund Institutional or generate 7.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Arrow Managed Futures vs. Oakmark Fund Institutional
Performance |
Timeline |
Arrow Managed Futures |
Oakmark Fund Institu |
Arrow Managed and Oakmark Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arrow Managed and Oakmark Fund
The main advantage of trading using opposite Arrow Managed and Oakmark Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed position performs unexpectedly, Oakmark Fund 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 Fund will offset losses from the drop in Oakmark Fund's long position.Arrow Managed vs. Money Market Obligations | Arrow Managed vs. Elfun Government Money | Arrow Managed vs. Hewitt Money Market | Arrow Managed vs. Putnam Money Market |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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