Correlation Between Oakmark Fund and Artisan International

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

By analyzing existing cross correlation between Oakmark Fund Advisor and Artisan International Value, you can compare the effects of market volatilities on Oakmark Fund and Artisan International 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 Artisan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Fund and Artisan International.

Diversification Opportunities for Oakmark Fund and Artisan International

-0.1

Correlation Coefficient

Oakmark Fund  Artisan International

Good diversification

The 3 months correlation between Oakmark and Artisan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Fund Advisor and Artisan International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan International 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 Advisor are associated (or correlated) with Artisan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan International has no effect on the direction of Oakmark Fund i.e., Oakmark Fund and Artisan International go up and down completely randomly.

Pair Corralation between Oakmark Fund and Artisan International

Assuming the 90 days horizon Oakmark Fund Advisor is expected to under-perform the Artisan International. In addition to that, Oakmark Fund is 1.52 times more volatile than Artisan International Value. It trades about -0.24 of its total potential returns per unit of risk. Artisan International Value is currently generating about -0.31 per unit of volatility. If you would invest  4,872  in Artisan International Value on October 10, 2024 and sell it today you would lose (169.00) from holding Artisan International Value or give up 3.47% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Oakmark Fund Advisor  vs.  Artisan International Value

Oakmark Fund Advisor

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oakmark Fund Advisor are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Oakmark Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Artisan International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artisan International Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Oakmark Fund and Artisan International

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

The idea behind Oakmark Fund Advisor and Artisan International Value 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.