Correlation Between Artisan Select and Keeley Small-mid
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Keeley Small-mid 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 Keeley Small-mid 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 Keeley Small Mid Cap, you can compare the effects of market volatilities on Artisan Select and Keeley Small-mid 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 Keeley Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Keeley Small-mid.
Diversification Opportunities for Artisan Select and Keeley Small-mid
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Keeley is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Keeley Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Small Mid 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 Keeley Small-mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeley Small Mid has no effect on the direction of Artisan Select i.e., Artisan Select and Keeley Small-mid go up and down completely randomly.
Pair Corralation between Artisan Select and Keeley Small-mid
Assuming the 90 days horizon Artisan Select is expected to generate 1.59 times less return on investment than Keeley Small-mid. But when comparing it to its historical volatility, Artisan Select Equity is 1.57 times less risky than Keeley Small-mid. It trades about 0.34 of its potential returns per unit of risk. Keeley Small Mid Cap is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,036 in Keeley Small Mid Cap on September 1, 2024 and sell it today you would earn a total of 91.00 from holding Keeley Small Mid Cap or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Artisan Select Equity vs. Keeley Small Mid Cap
Performance |
| Timeline |
| Artisan Select Equity |
| Keeley Small Mid |
Artisan Select and Keeley Small-mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Keeley Small-mid
The main advantage of trading using opposite Artisan Select and Keeley Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Keeley Small-mid 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 Keeley Small-mid will offset losses from the drop in Keeley Small-mid's long position.| Artisan Select vs. Energy Basic Materials | Artisan Select vs. Franklin Natural Resources | Artisan Select vs. Gamco Natural Resources | Artisan Select vs. Icon Natural Resources |
| Keeley Small-mid vs. Keeley Mid Cap | Keeley Small-mid vs. Keeley Mid Cap | Keeley Small-mid vs. Keeley Small Cap | Keeley Small-mid vs. Keeley Small Cap |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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