Correlation Between Artisan Partners and Federated Premier
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Federated Premier 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 Federated Premier 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 Federated Premier Municipal, you can compare the effects of market volatilities on Artisan Partners and Federated Premier 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 Federated Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Federated Premier.
Diversification Opportunities for Artisan Partners and Federated Premier
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Artisan and Federated is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Federated Premier Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Premier 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 Federated Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Premier has no effect on the direction of Artisan Partners i.e., Artisan Partners and Federated Premier go up and down completely randomly.
Pair Corralation between Artisan Partners and Federated Premier
Given the investment horizon of 90 days Artisan Partners Asset is expected to generate 3.05 times more return on investment than Federated Premier. However, Artisan Partners is 3.05 times more volatile than Federated Premier Municipal. It trades about 0.08 of its potential returns per unit of risk. Federated Premier Municipal is currently generating about 0.08 per unit of risk. If you would invest 3,437 in Artisan Partners Asset on August 24, 2024 and sell it today you would earn a total of 1,309 from holding Artisan Partners Asset or generate 38.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Partners Asset vs. Federated Premier Municipal
Performance |
| Timeline |
| Artisan Partners Asset |
| Federated Premier |
Artisan Partners and Federated Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Federated Premier
The main advantage of trading using opposite Artisan Partners and Federated Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Federated Premier 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 Federated Premier will offset losses from the drop in Federated Premier'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 |
| Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance National | Federated Premier vs. Blackrock Muniyield Quality | Federated Premier vs. Munivest Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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