Correlation Between Crawford Multi and Oakmark Select
Can any of the company-specific risk be diversified away by investing in both Crawford Multi and Oakmark Select 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 Crawford Multi and Oakmark Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crawford Multi Asset Income and Oakmark Select Fund, you can compare the effects of market volatilities on Crawford Multi and Oakmark Select 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 Crawford Multi with a short position of Oakmark Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crawford Multi and Oakmark Select.
Diversification Opportunities for Crawford Multi and Oakmark Select
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Crawford and Oakmark is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Crawford Multi Asset Income and Oakmark Select Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Select and Crawford Multi 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 Crawford Multi Asset Income are associated (or correlated) with Oakmark Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Select has no effect on the direction of Crawford Multi i.e., Crawford Multi and Oakmark Select go up and down completely randomly.
Pair Corralation between Crawford Multi and Oakmark Select
Assuming the 90 days horizon Crawford Multi is expected to generate 1.16 times less return on investment than Oakmark Select. But when comparing it to its historical volatility, Crawford Multi Asset Income is 2.18 times less risky than Oakmark Select. It trades about 0.13 of its potential returns per unit of risk. Oakmark Select Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,261 in Oakmark Select Fund on September 24, 2024 and sell it today you would earn a total of 752.00 from holding Oakmark Select Fund or generate 10.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Crawford Multi Asset Income vs. Oakmark Select Fund
Performance |
Timeline |
Crawford Multi Asset |
Oakmark Select |
Crawford Multi and Oakmark Select Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Crawford Multi and Oakmark Select
The main advantage of trading using opposite Crawford Multi and Oakmark Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crawford Multi position performs unexpectedly, Oakmark Select 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 Select will offset losses from the drop in Oakmark Select's long position.Crawford Multi vs. Crawford Dividend Growth | Crawford Multi vs. Crafword Dividend Growth | Crawford Multi vs. Crawford Dividend Opportunity | Crawford Multi vs. Deutsche Munications Fund |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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