Correlation Between Artisan Partners and Croghan Bancshares
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Croghan Bancshares 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 Croghan Bancshares 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 Croghan Bancshares, you can compare the effects of market volatilities on Artisan Partners and Croghan Bancshares 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 Croghan Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Croghan Bancshares.
Diversification Opportunities for Artisan Partners and Croghan Bancshares
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Croghan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Croghan Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Croghan Bancshares 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 Croghan Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Croghan Bancshares has no effect on the direction of Artisan Partners i.e., Artisan Partners and Croghan Bancshares go up and down completely randomly.
Pair Corralation between Artisan Partners and Croghan Bancshares
Given the investment horizon of 90 days Artisan Partners Asset is expected to generate 0.58 times more return on investment than Croghan Bancshares. However, Artisan Partners Asset is 1.72 times less risky than Croghan Bancshares. It trades about 0.06 of its potential returns per unit of risk. Croghan Bancshares is currently generating about 0.0 per unit of risk. If you would invest 3,201 in Artisan Partners Asset on September 4, 2024 and sell it today you would earn a total of 1,709 from holding Artisan Partners Asset or generate 53.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.86% |
| Values | Daily Returns |
Artisan Partners Asset vs. Croghan Bancshares
Performance |
| Timeline |
| Artisan Partners Asset |
| Croghan Bancshares |
Artisan Partners and Croghan Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Croghan Bancshares
The main advantage of trading using opposite Artisan Partners and Croghan Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Croghan Bancshares 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 Croghan Bancshares will offset losses from the drop in Croghan Bancshares' long position.| Artisan Partners vs. Visa Class A | Artisan Partners vs. Diamond Hill Investment | Artisan Partners vs. Associated Capital Group | Artisan Partners vs. Brookfield Corp |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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