Correlation Between Artisan Partners and Bank of New York
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Bank of New York 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 Artisan Partners and Bank of New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Partners Asset and Bank of New, you can compare the effects of market volatilities on Artisan Partners and Bank of New York 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 Artisan Partners with a short position of Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Bank of New York.
Diversification Opportunities for Artisan Partners and Bank of New York
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Artisan and Bank is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Bank of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York and Artisan Partners 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 Artisan Partners Asset are associated (or correlated) with Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of Artisan Partners i.e., Artisan Partners and Bank of New York go up and down completely randomly.
Pair Corralation between Artisan Partners and Bank of New York
Given the investment horizon of 90 days Artisan Partners is expected to generate 2.41 times less return on investment than Bank of New York. But when comparing it to its historical volatility, Artisan Partners Asset is 1.52 times less risky than Bank of New York. It trades about 0.19 of its potential returns per unit of risk. Bank of New is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 7,699 in Bank of New on November 2, 2024 and sell it today you would earn a total of 951.00 from holding Bank of New or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Partners Asset vs. Bank of New
Performance |
| Timeline |
| Artisan Partners Asset |
| Bank of New York |
Artisan Partners and Bank of New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Bank of New York
The main advantage of trading using opposite Artisan Partners and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.| Artisan Partners vs. Federated Premier Municipal | Artisan Partners vs. Blackrock Muniyield | Artisan Partners vs. Diamond Hill Investment | Artisan Partners vs. NXG NextGen Infrastructure |
| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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