Correlation Between Artisan Partners and Stagwell
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Stagwell 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 Stagwell 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 Stagwell, you can compare the effects of market volatilities on Artisan Partners and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Stagwell.
Diversification Opportunities for Artisan Partners and Stagwell
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Artisan and Stagwell is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Artisan Partners i.e., Artisan Partners and Stagwell go up and down completely randomly.
Pair Corralation between Artisan Partners and Stagwell
Given the investment horizon of 90 days Artisan Partners Asset is expected to generate 0.77 times more return on investment than Stagwell. However, Artisan Partners Asset is 1.3 times less risky than Stagwell. It trades about 0.16 of its potential returns per unit of risk. Stagwell is currently generating about 0.07 per unit of risk. If you would invest 4,088 in Artisan Partners Asset on August 30, 2024 and sell it today you would earn a total of 775.00 from holding Artisan Partners Asset or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Partners Asset vs. Stagwell
Performance |
| Timeline |
| Artisan Partners Asset |
| Stagwell |
Artisan Partners and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Stagwell
The main advantage of trading using opposite Artisan Partners and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell'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 |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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