Correlation Between Oakmark Fund and Atac Inflation

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

By analyzing existing cross correlation between Oakmark Fund Institutional and Atac Inflation Rotation, you can compare the effects of market volatilities on Oakmark Fund and Atac Inflation 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 Fund with a short position of Atac Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Fund and Atac Inflation.

Diversification Opportunities for Oakmark Fund and Atac Inflation

0.55

Correlation Coefficient

Oakmark Fund  Atac Inflation

Very weak diversification

The 3 months correlation between Oakmark and Atac is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Fund Institutional and Atac Inflation Rotation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atac Inflation Rotation and Oakmark Fund 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 Fund Institutional are associated (or correlated) with Atac Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atac Inflation Rotation has no effect on the direction of Oakmark Fund i.e., Oakmark Fund and Atac Inflation go up and down completely randomly.

Pair Corralation between Oakmark Fund and Atac Inflation

Assuming the 90 days horizon Oakmark Fund Institutional is expected to generate 0.51 times more return on investment than Atac Inflation. However, Oakmark Fund Institutional is 1.98 times less risky than Atac Inflation. It trades about 0.15 of its potential returns per unit of risk. Atac Inflation Rotation is currently generating about 0.03 per unit of risk. 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 Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Oakmark Fund Institutional  vs.  Atac Inflation Rotation

Oakmark Fund Institu

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oakmark Fund Institutional are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Oakmark Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Atac Inflation Rotation

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Atac Inflation Rotation are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Atac Inflation is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oakmark Fund and Atac Inflation

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

The idea behind Oakmark Fund Institutional and Atac Inflation Rotation 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.