Correlation Between Artisan Partners and Spectrum Brands
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Spectrum Brands 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 Spectrum Brands 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 Spectrum Brands Holdings, you can compare the effects of market volatilities on Artisan Partners and Spectrum Brands 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 Spectrum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Spectrum Brands.
Diversification Opportunities for Artisan Partners and Spectrum Brands
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Artisan and Spectrum is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands Holdings 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 Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of Artisan Partners i.e., Artisan Partners and Spectrum Brands go up and down completely randomly.
Pair Corralation between Artisan Partners and Spectrum Brands
Given the investment horizon of 90 days Artisan Partners Asset is expected to generate 0.65 times more return on investment than Spectrum Brands. However, Artisan Partners Asset is 1.53 times less risky than Spectrum Brands. It trades about 0.02 of its potential returns per unit of risk. Spectrum Brands Holdings is currently generating about -0.06 per unit of risk. If you would invest 4,833 in Artisan Partners Asset on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Artisan Partners Asset or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Partners Asset vs. Spectrum Brands Holdings
Performance |
| Timeline |
| Artisan Partners Asset |
| Spectrum Brands Holdings |
Artisan Partners and Spectrum Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Spectrum Brands
The main advantage of trading using opposite Artisan Partners and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Spectrum Brands 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 Spectrum Brands will offset losses from the drop in Spectrum Brands' 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 |
| Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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