Correlation Between Oakmark Select and Diamond Hill
Can any of the company-specific risk be diversified away by investing in both Oakmark Select and Diamond Hill 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 Select and Diamond Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Select Fund and Diamond Hill Large, you can compare the effects of market volatilities on Oakmark Select and Diamond Hill 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 Select with a short position of Diamond Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Select and Diamond Hill.
Diversification Opportunities for Oakmark Select and Diamond Hill
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oakmark and Diamond is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Select Fund and Diamond Hill Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Hill Large and Oakmark Select 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 Select Fund are associated (or correlated) with Diamond Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Hill Large has no effect on the direction of Oakmark Select i.e., Oakmark Select and Diamond Hill go up and down completely randomly.
Pair Corralation between Oakmark Select and Diamond Hill
Assuming the 90 days horizon Oakmark Select Fund is expected to generate 1.14 times more return on investment than Diamond Hill. However, Oakmark Select is 1.14 times more volatile than Diamond Hill Large. It trades about 0.09 of its potential returns per unit of risk. Diamond Hill Large is currently generating about -0.03 per unit of risk. If you would invest 8,554 in Oakmark Select Fund on September 11, 2025 and sell it today you would earn a total of 410.00 from holding Oakmark Select Fund or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark Select Fund vs. Diamond Hill Large
Performance |
| Timeline |
| Oakmark Select |
| Diamond Hill Large |
Oakmark Select and Diamond Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Select and Diamond Hill
The main advantage of trading using opposite Oakmark Select and Diamond Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Select position performs unexpectedly, Diamond Hill 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 Diamond Hill will offset losses from the drop in Diamond Hill's long position.| Oakmark Select vs. Diamond Hill Large | Oakmark Select vs. Schwab Small Cap Index | Oakmark Select vs. T Rowe Price | Oakmark Select vs. Amg Yacktman Fund |
| Diamond Hill vs. Oakmark Select Fund | Diamond Hill vs. T Rowe Price | Diamond Hill vs. Schwab Small Cap Index | Diamond Hill vs. T Rowe Price |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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