Correlation Between Akre Focus and Artisan Global
Can any of the company-specific risk be diversified away by investing in both Akre Focus and Artisan Global 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 Akre Focus and Artisan Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akre Focus Fund and Artisan Global Value, you can compare the effects of market volatilities on Akre Focus and Artisan Global 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 Akre Focus with a short position of Artisan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akre Focus and Artisan Global.
Diversification Opportunities for Akre Focus and Artisan Global
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Akre and Artisan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Akre Focus Fund and Artisan Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Global Value and Akre Focus 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 Akre Focus Fund are associated (or correlated) with Artisan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Global Value has no effect on the direction of Akre Focus i.e., Akre Focus and Artisan Global go up and down completely randomly.
Pair Corralation between Akre Focus and Artisan Global
Assuming the 90 days horizon Akre Focus Fund is expected to generate 1.27 times more return on investment than Artisan Global. However, Akre Focus is 1.27 times more volatile than Artisan Global Value. It trades about 0.18 of its potential returns per unit of risk. Artisan Global Value is currently generating about 0.05 per unit of risk. If you would invest 6,265 in Akre Focus Fund on August 30, 2024 and sell it today you would earn a total of 1,234 from holding Akre Focus Fund or generate 19.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akre Focus Fund vs. Artisan Global Value
Performance |
| Timeline |
| Akre Focus Fund |
| Artisan Global Value |
Akre Focus and Artisan Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akre Focus and Artisan Global
The main advantage of trading using opposite Akre Focus and Artisan Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akre Focus position performs unexpectedly, Artisan Global 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 Global will offset losses from the drop in Artisan Global's long position.| Akre Focus vs. Osterweis Strategic Income | Akre Focus vs. Doubleline Low Duration | Akre Focus vs. Doubleline Total Return | Akre Focus vs. Vanguard Dividend Growth |
| Artisan Global vs. Artisan Global Value | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Global Opportunities | Artisan Global vs. Poplar Forest Partners |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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