Correlation Between Oakmark Select and Marsico Focus

Can any of the company-specific risk be diversified away by investing in both Oakmark Select and Marsico Focus 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 Marsico Focus 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 Marsico Focus Fund, you can compare the effects of market volatilities on Oakmark Select and Marsico Focus 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 Marsico Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Select and Marsico Focus.

Diversification Opportunities for Oakmark Select and Marsico Focus

0.91

Correlation Coefficient

Oakmark Select  Marsico Focus

Almost no diversification

The 3 months correlation between Oakmark and Marsico is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Select Fund and Marsico Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico Focus 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 Marsico Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico Focus has no effect on the direction of Oakmark Select i.e., Oakmark Select and Marsico Focus go up and down completely randomly.

Pair Corralation between Oakmark Select and Marsico Focus

Assuming the 90 days horizon Oakmark Select is expected to generate 2.35 times less return on investment than Marsico Focus. In addition to that, Oakmark Select is 1.1 times more volatile than Marsico Focus Fund. It trades about 0.11 of its total potential returns per unit of risk. Marsico Focus Fund is currently generating about 0.28 per unit of volatility. If you would invest  2,805  in Marsico Focus Fund on May 6, 2025 and sell it today you would earn a total of  448.00  from holding Marsico Focus Fund or generate 15.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Oakmark Select Fund  vs.  Marsico Focus Fund

Oakmark Select

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oakmark Select Fund are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Oakmark Select may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Marsico Focus

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Marsico Focus Fund are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Marsico Focus showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oakmark Select and Marsico Focus

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

The idea behind Oakmark Select Fund and Marsico Focus Fund 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.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.