Correlation Between Artisan Partners and US Global
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and US 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 Artisan Partners and US Global 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 US Global Investors, you can compare the effects of market volatilities on Artisan Partners and US 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 Artisan Partners with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and US Global.
Diversification Opportunities for Artisan Partners and US Global
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Artisan and GROW is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Artisan Partners i.e., Artisan Partners and US Global go up and down completely randomly.
Pair Corralation between Artisan Partners and US Global
Given the investment horizon of 90 days Artisan Partners Asset is expected to generate 1.49 times more return on investment than US Global. However, Artisan Partners is 1.49 times more volatile than US Global Investors. It trades about 0.07 of its potential returns per unit of risk. US Global Investors is currently generating about -0.02 per unit of risk. If you would invest 4,221 in Artisan Partners Asset on August 31, 2024 and sell it today you would earn a total of 658.00 from holding Artisan Partners Asset or generate 15.59% 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. US Global Investors
Performance |
| Timeline |
| Artisan Partners Asset |
| US Global Investors |
Artisan Partners and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and US Global
The main advantage of trading using opposite Artisan Partners and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, US 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 US Global will offset losses from the drop in US Global'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 |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 CEOs Directory module to screen CEOs from public companies around the world.
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