Correlation Between Oakmark International and World Ex
Can any of the company-specific risk be diversified away by investing in both Oakmark International and World Ex 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 International and World Ex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark International Fund and World Ex Val, you can compare the effects of market volatilities on Oakmark International and World Ex 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 International with a short position of World Ex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and World Ex.
Diversification Opportunities for Oakmark International and World Ex
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oakmark and World is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Fund and World Ex Val in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Ex Val and Oakmark International 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 International Fund are associated (or correlated) with World Ex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Ex Val has no effect on the direction of Oakmark International i.e., Oakmark International and World Ex go up and down completely randomly.
Pair Corralation between Oakmark International and World Ex
Assuming the 90 days horizon Oakmark International is expected to generate 2.15 times less return on investment than World Ex. In addition to that, Oakmark International is 1.39 times more volatile than World Ex Val. It trades about 0.06 of its total potential returns per unit of risk. World Ex Val is currently generating about 0.19 per unit of volatility. If you would invest 1,486 in World Ex Val on June 8, 2025 and sell it today you would earn a total of 120.00 from holding World Ex Val or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark International Fund vs. World Ex Val
Performance |
| Timeline |
| Oakmark International |
| World Ex Val |
Risk-Adjusted Performance
Good
Weak | Strong |
Oakmark International and World Ex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and World Ex
The main advantage of trading using opposite Oakmark International and World Ex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International position performs unexpectedly, World Ex 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 World Ex will offset losses from the drop in World Ex's long position.| Oakmark International vs. Artisan High Income | Oakmark International vs. T Rowe Price | Oakmark International vs. Morningstar Defensive Bond | Oakmark International vs. Vanguard Intermediate Term Tax Exempt |
| World Ex vs. Qs Growth Fund | World Ex vs. Eagle Growth Income | World Ex vs. T Rowe Price | World Ex vs. L Abbett Growth |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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