Correlation Between Oakmark Equity and Amg Yacktman
Can any of the company-specific risk be diversified away by investing in both Oakmark Equity and Amg Yacktman 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 Oakmark Equity and Amg Yacktman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Equity And and Amg Yacktman Fund, you can compare the effects of market volatilities on Oakmark Equity and Amg Yacktman 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 Oakmark Equity with a short position of Amg Yacktman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Equity and Amg Yacktman.
Diversification Opportunities for Oakmark Equity and Amg Yacktman
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oakmark and Amg is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Equity And and Amg Yacktman Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman and Oakmark Equity 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 Oakmark Equity And are associated (or correlated) with Amg Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman has no effect on the direction of Oakmark Equity i.e., Oakmark Equity and Amg Yacktman go up and down completely randomly.
Pair Corralation between Oakmark Equity and Amg Yacktman
Assuming the 90 days horizon Oakmark Equity And is expected to generate 1.08 times more return on investment than Amg Yacktman. However, Oakmark Equity is 1.08 times more volatile than Amg Yacktman Fund. It trades about 0.14 of its potential returns per unit of risk. Amg Yacktman Fund is currently generating about 0.03 per unit of risk. If you would invest 3,567 in Oakmark Equity And on September 14, 2024 and sell it today you would earn a total of 156.00 from holding Oakmark Equity And or generate 4.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Oakmark Equity And vs. Amg Yacktman Fund
Performance |
Timeline |
Oakmark Equity And |
Amg Yacktman |
Oakmark Equity and Amg Yacktman Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oakmark Equity and Amg Yacktman
The main advantage of trading using opposite Oakmark Equity and Amg Yacktman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Equity position performs unexpectedly, Amg Yacktman 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 Amg Yacktman will offset losses from the drop in Amg Yacktman's long position.Oakmark Equity vs. Oakmark Global Fund | Oakmark Equity vs. Oakmark International Fund | Oakmark Equity vs. Oakmark Select Fund | Oakmark Equity vs. T Rowe Price |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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