Correlation Between Artisan High and Payden Regal
Can any of the company-specific risk be diversified away by investing in both Artisan High and Payden Regal 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 High and Payden Regal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan High Income and The Payden Regal, you can compare the effects of market volatilities on Artisan High and Payden Regal 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 High with a short position of Payden Regal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Payden Regal.
Diversification Opportunities for Artisan High and Payden Regal
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Payden is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and The Payden Regal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Regal and Artisan High 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 High Income are associated (or correlated) with Payden Regal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Regal has no effect on the direction of Artisan High i.e., Artisan High and Payden Regal go up and down completely randomly.
Pair Corralation between Artisan High and Payden Regal
Assuming the 90 days horizon Artisan High Income is expected to generate 1.08 times more return on investment than Payden Regal. However, Artisan High is 1.08 times more volatile than The Payden Regal. It trades about 0.19 of its potential returns per unit of risk. The Payden Regal is currently generating about 0.19 per unit of risk. If you would invest 782.00 in Artisan High Income on September 12, 2024 and sell it today you would earn a total of 138.00 from holding Artisan High Income or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan High Income vs. The Payden Regal
Performance |
| Timeline |
| Artisan High Income |
| Payden Regal |
Artisan High and Payden Regal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan High and Payden Regal
The main advantage of trading using opposite Artisan High and Payden Regal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan High position performs unexpectedly, Payden Regal 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 Payden Regal will offset losses from the drop in Payden Regal's long position.| Artisan High vs. SCOR PK | Artisan High vs. Morningstar Unconstrained Allocation | Artisan High vs. Via Renewables | Artisan High vs. Bondbloxx ETF Trust |
| Payden Regal vs. Ab High Income | Payden Regal vs. Artisan High Income | Payden Regal vs. Lgm Risk Managed | Payden Regal vs. Western Asset High |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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