Correlation Between Artisan Select and Dreyfus Large
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Dreyfus Large 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 Select and Dreyfus Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Select Equity and Dreyfus Large Cap, you can compare the effects of market volatilities on Artisan Select and Dreyfus Large 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 Select with a short position of Dreyfus Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Dreyfus Large.
Diversification Opportunities for Artisan Select and Dreyfus Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Dreyfus is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Dreyfus Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Large Cap and Artisan Select 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 Select Equity are associated (or correlated) with Dreyfus Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Large Cap has no effect on the direction of Artisan Select i.e., Artisan Select and Dreyfus Large go up and down completely randomly.
Pair Corralation between Artisan Select and Dreyfus Large
Assuming the 90 days horizon Artisan Select Equity is expected to generate 0.57 times more return on investment than Dreyfus Large. However, Artisan Select Equity is 1.76 times less risky than Dreyfus Large. It trades about 0.11 of its potential returns per unit of risk. Dreyfus Large Cap is currently generating about -0.01 per unit of risk. If you would invest 1,086 in Artisan Select Equity on September 2, 2024 and sell it today you would earn a total of 550.00 from holding Artisan Select Equity or generate 50.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Select Equity vs. Dreyfus Large Cap
Performance |
| Timeline |
| Artisan Select Equity |
| Dreyfus Large Cap |
Artisan Select and Dreyfus Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Dreyfus Large
The main advantage of trading using opposite Artisan Select and Dreyfus Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Dreyfus Large 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 Dreyfus Large will offset losses from the drop in Dreyfus Large's long position.| Artisan Select vs. Artisan Developing World | Artisan Select vs. Artisan Focus | Artisan Select vs. Artisan Small Cap | Artisan Select vs. Artisan Global Opportunities |
| Dreyfus Large vs. Marsico Focus Fund | Dreyfus Large vs. Dreyfus Sp 500 | Dreyfus Large vs. Dreyfus Institutional Sp | Dreyfus Large vs. Causeway International Value |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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