Correlation Between Artisan Partners and First Republic
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and First Republic 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 First Republic 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 First Republic Bank, you can compare the effects of market volatilities on Artisan Partners and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and First Republic.
Diversification Opportunities for Artisan Partners and First Republic
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Artisan and First is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Artisan Partners i.e., Artisan Partners and First Republic go up and down completely randomly.
Pair Corralation between Artisan Partners and First Republic
If you would invest 3,337 in Artisan Partners Asset on September 12, 2024 and sell it today you would earn a total of 1,517 from holding Artisan Partners Asset or generate 45.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Artisan Partners Asset vs. First Republic Bank
Performance |
| Timeline |
| Artisan Partners Asset |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Artisan Partners and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and First Republic
The main advantage of trading using opposite Artisan Partners and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic'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 |
| First Republic vs. Ameriprise Financial | First Republic vs. Nexstar Broadcasting Group | First Republic vs. Artisan Partners Asset | First Republic vs. United Airlines Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |