Correlation Between Artisan Partners and Marine Products
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Marine Products 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 Marine Products 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 Marine Products, you can compare the effects of market volatilities on Artisan Partners and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Marine Products.
Diversification Opportunities for Artisan Partners and Marine Products
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Marine is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Artisan Partners i.e., Artisan Partners and Marine Products go up and down completely randomly.
Pair Corralation between Artisan Partners and Marine Products
Given the investment horizon of 90 days Artisan Partners Asset is expected to generate 1.02 times more return on investment than Marine Products. However, Artisan Partners is 1.02 times more volatile than Marine Products. It trades about 0.04 of its potential returns per unit of risk. Marine Products is currently generating about -0.03 per unit of risk. If you would invest 4,140 in Artisan Partners Asset on October 26, 2024 and sell it today you would earn a total of 308.00 from holding Artisan Partners Asset or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Partners Asset vs. Marine Products
Performance |
| Timeline |
| Artisan Partners Asset |
| Marine Products |
Artisan Partners and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Marine Products
The main advantage of trading using opposite Artisan Partners and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| Artisan Partners vs. KKR Co LP | Artisan Partners vs. Carlyle Group | Artisan Partners vs. Blue Owl Capital | Artisan Partners vs. TPG Inc |
| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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