Correlation Between Oakmark Bond and James Balanced:

Can any of the company-specific risk be diversified away by investing in both Oakmark Bond and James Balanced: 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 Bond and James Balanced: into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oakmark Bond and James Balanced Golden, you can compare the effects of market volatilities on Oakmark Bond and James Balanced: 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 Bond with a short position of James Balanced:. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Bond and James Balanced:.

Diversification Opportunities for Oakmark Bond and James Balanced:

-0.13

Correlation Coefficient

Oakmark Bond  James Balanced:

Good diversification

The 3 months correlation between Oakmark and James is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Bond and James Balanced Golden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Balanced Golden and Oakmark Bond 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 Bond are associated (or correlated) with James Balanced:. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Balanced Golden has no effect on the direction of Oakmark Bond i.e., Oakmark Bond and James Balanced: go up and down completely randomly.

Pair Corralation between Oakmark Bond and James Balanced:

Assuming the 90 days horizon Oakmark Bond is expected to generate 0.56 times more return on investment than James Balanced:. However, Oakmark Bond is 1.8 times less risky than James Balanced:. It trades about 0.11 of its potential returns per unit of risk. James Balanced Golden is currently generating about -0.02 per unit of risk. If you would invest  871.00  in Oakmark Bond on December 28, 2024 and sell it today you would earn a total of  17.00  from holding Oakmark Bond or generate 1.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Oakmark Bond  vs.  James Balanced Golden

Oakmark Bond

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oakmark Bond are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Oakmark Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

James Balanced Golden

Risk-Adjusted Performance

Very Weak

Over the last 90 days James Balanced Golden has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, James Balanced: is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oakmark Bond and James Balanced:

The main advantage of trading using opposite Oakmark Bond and James Balanced: positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Bond position performs unexpectedly, James Balanced: 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 James Balanced: will offset losses from the drop in James Balanced:'s long position.

The idea behind Oakmark Bond and James Balanced Golden pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.