Correlation Between Artisan Select and Small Cap
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Small Cap 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 Small Cap 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 Small Cap Value Profund, you can compare the effects of market volatilities on Artisan Select and Small Cap 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 Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Small Cap.
Diversification Opportunities for Artisan Select and Small Cap
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Small is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Small Cap Value Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Value 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 Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Value has no effect on the direction of Artisan Select i.e., Artisan Select and Small Cap go up and down completely randomly.
Pair Corralation between Artisan Select and Small Cap
Assuming the 90 days horizon Artisan Select is expected to generate 1.91 times less return on investment than Small Cap. But when comparing it to its historical volatility, Artisan Select Equity is 1.63 times less risky than Small Cap. It trades about 0.08 of its potential returns per unit of risk. Small Cap Value Profund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,062 in Small Cap Value Profund on September 14, 2024 and sell it today you would earn a total of 150.00 from holding Small Cap Value Profund or generate 1.66% 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. Small Cap Value Profund
Performance |
| Timeline |
| Artisan Select Equity |
| Small Cap Value |
Artisan Select and Small Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Small Cap
The main advantage of trading using opposite Artisan Select and Small Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Small Cap 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 Small Cap will offset losses from the drop in Small Cap'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 |
| Small Cap vs. Short Real Estate | Small Cap vs. Short Real Estate | Small Cap vs. Ultrashort Mid Cap Profund | Small Cap vs. Ultrashort Mid Cap Profund |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |