Correlation Between Artisan Select and Selected American
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Selected American 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 Selected American 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 Selected American Shares, you can compare the effects of market volatilities on Artisan Select and Selected American 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 Selected American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Selected American.
Diversification Opportunities for Artisan Select and Selected American
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Selected is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Selected American Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selected American Shares 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 Selected American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selected American Shares has no effect on the direction of Artisan Select i.e., Artisan Select and Selected American go up and down completely randomly.
Pair Corralation between Artisan Select and Selected American
Assuming the 90 days horizon Artisan Select Equity is expected to generate 0.7 times more return on investment than Selected American. However, Artisan Select Equity is 1.42 times less risky than Selected American. It trades about 0.1 of its potential returns per unit of risk. Selected American Shares is currently generating about 0.06 per unit of risk. If you would invest 1,277 in Artisan Select Equity on September 12, 2024 and sell it today you would earn a total of 326.00 from holding Artisan Select Equity or generate 25.53% 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. Selected American Shares
Performance |
| Timeline |
| Artisan Select Equity |
| Selected American Shares |
Artisan Select and Selected American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Selected American
The main advantage of trading using opposite Artisan Select and Selected American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Selected American 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 Selected American will offset losses from the drop in Selected American'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 |
| Selected American vs. Calamos Global Equity | Selected American vs. Huber Capital Equity | Selected American vs. Artisan Select Equity | Selected American vs. Balanced Fund Retail |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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