Correlation Between Artisan Select and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Timothy Plan 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 Timothy Plan 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 Timothy Plan Growth, you can compare the effects of market volatilities on Artisan Select and Timothy Plan 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 Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Timothy Plan.
Diversification Opportunities for Artisan Select and Timothy Plan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Timothy is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Timothy Plan Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Growth 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 Timothy Plan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Plan Growth has no effect on the direction of Artisan Select i.e., Artisan Select and Timothy Plan go up and down completely randomly.
Pair Corralation between Artisan Select and Timothy Plan
Assuming the 90 days horizon Artisan Select Equity is expected to generate 1.78 times more return on investment than Timothy Plan. However, Artisan Select is 1.78 times more volatile than Timothy Plan Growth. It trades about 0.24 of its potential returns per unit of risk. Timothy Plan Growth is currently generating about 0.32 per unit of risk. If you would invest 1,570 in Artisan Select Equity on August 31, 2024 and sell it today you would earn a total of 64.00 from holding Artisan Select Equity or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Select Equity vs. Timothy Plan Growth
Performance |
| Timeline |
| Artisan Select Equity |
| Timothy Plan Growth |
Artisan Select and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Timothy Plan
The main advantage of trading using opposite Artisan Select and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Timothy Plan 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 Timothy Plan will offset losses from the drop in Timothy Plan's long position.| Artisan Select vs. Health Care Fund | Artisan Select vs. Tekla Healthcare Opportunities | Artisan Select vs. Health Biotchnology Portfolio | Artisan Select vs. Alphacentric Lifesci Healthcare |
| Timothy Plan vs. Locorr Dynamic Equity | Timothy Plan vs. The Gabelli Equity | Timothy Plan vs. Artisan Select Equity | Timothy Plan vs. Huber Capital Equity |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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