Correlation Between Artisan Select and Amcap Fund
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Amcap Fund 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 Amcap Fund 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 Amcap Fund Class, you can compare the effects of market volatilities on Artisan Select and Amcap Fund 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 Amcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Amcap Fund.
Diversification Opportunities for Artisan Select and Amcap Fund
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Amcap is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Amcap Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcap Fund Class 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 Amcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcap Fund Class has no effect on the direction of Artisan Select i.e., Artisan Select and Amcap Fund go up and down completely randomly.
Pair Corralation between Artisan Select and Amcap Fund
Assuming the 90 days horizon Artisan Select is expected to generate 1.1 times less return on investment than Amcap Fund. But when comparing it to its historical volatility, Artisan Select Equity is 1.28 times less risky than Amcap Fund. It trades about 0.1 of its potential returns per unit of risk. Amcap Fund Class is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,670 in Amcap Fund Class on September 12, 2024 and sell it today you would earn a total of 1,027 from holding Amcap Fund Class or generate 27.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Select Equity vs. Amcap Fund Class
Performance |
| Timeline |
| Artisan Select Equity |
| Amcap Fund Class |
Artisan Select and Amcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Amcap Fund
The main advantage of trading using opposite Artisan Select and Amcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Amcap Fund 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 Amcap Fund will offset losses from the drop in Amcap Fund's long position.| Artisan Select vs. Versatile Bond Portfolio | Artisan Select vs. Pace High Yield | Artisan Select vs. Artisan High Income | Artisan Select vs. Ambrus Core Bond |
| Amcap Fund vs. Absolute Convertible Arbitrage | Amcap Fund vs. Virtus Convertible | Amcap Fund vs. Rationalpier 88 Convertible |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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