Correlation Between Artisan Partners and Rand Capital
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Rand Capital 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 Rand Capital 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 Rand Capital Corp, you can compare the effects of market volatilities on Artisan Partners and Rand Capital 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 Rand Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Rand Capital.
Diversification Opportunities for Artisan Partners and Rand Capital
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Artisan and Rand is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Rand Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rand Capital Corp 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 Rand Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rand Capital Corp has no effect on the direction of Artisan Partners i.e., Artisan Partners and Rand Capital go up and down completely randomly.
Pair Corralation between Artisan Partners and Rand Capital
Given the investment horizon of 90 days Artisan Partners Asset is expected to under-perform the Rand Capital. But the stock apears to be less risky and, when comparing its historical volatility, Artisan Partners Asset is 3.07 times less risky than Rand Capital. The stock trades about -0.01 of its potential returns per unit of risk. The Rand Capital Corp is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,640 in Rand Capital Corp on September 12, 2024 and sell it today you would earn a total of 468.00 from holding Rand Capital Corp or generate 28.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Artisan Partners Asset vs. Rand Capital Corp
Performance |
| Timeline |
| Artisan Partners Asset |
| Rand Capital Corp |
Artisan Partners and Rand Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Rand Capital
The main advantage of trading using opposite Artisan Partners and Rand Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Rand Capital 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 Rand Capital will offset losses from the drop in Rand Capital'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 |
| Rand Capital vs. Stellus Capital Investment | Rand Capital vs. Prospect Capital | Rand Capital vs. Gladstone Capital | Rand Capital vs. Main Street Capital |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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