Correlation Between Artisan Select and Federated Total
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Federated Total 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 Federated Total 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 Federated Total Return, you can compare the effects of market volatilities on Artisan Select and Federated Total 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 Federated Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Federated Total.
Diversification Opportunities for Artisan Select and Federated Total
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artisan and Federated is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Federated Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Total Return 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 Federated Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Total Return has no effect on the direction of Artisan Select i.e., Artisan Select and Federated Total go up and down completely randomly.
Pair Corralation between Artisan Select and Federated Total
Assuming the 90 days horizon Artisan Select Equity is expected to generate 1.87 times more return on investment than Federated Total. However, Artisan Select is 1.87 times more volatile than Federated Total Return. It trades about 0.12 of its potential returns per unit of risk. Federated Total Return is currently generating about 0.03 per unit of risk. If you would invest 1,330 in Artisan Select Equity on September 14, 2024 and sell it today you would earn a total of 284.00 from holding Artisan Select Equity or generate 21.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Select Equity vs. Federated Total Return
Performance |
| Timeline |
| Artisan Select Equity |
| Federated Total Return |
Artisan Select and Federated Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Federated Total
The main advantage of trading using opposite Artisan Select and Federated Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Federated Total 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 Federated Total will offset losses from the drop in Federated Total's long position.| Artisan Select vs. Lord Abbett Government | Artisan Select vs. Hsbc Government Money | Artisan Select vs. Aig Government Money | Artisan Select vs. Intermediate Government Bond |
| Federated Total vs. Federated Emerging Market | Federated Total vs. Federated Mdt All | Federated Total vs. Federated Mdt Balanced | Federated Total vs. Federated Global Allocation |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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