Correlation Between Artisan Select and Al Frank
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Al Frank 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 Al Frank 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 Al Frank Fund, you can compare the effects of market volatilities on Artisan Select and Al Frank 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 Al Frank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Al Frank.
Diversification Opportunities for Artisan Select and Al Frank
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and VALAX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Al Frank Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Frank Fund 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 Al Frank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Frank Fund has no effect on the direction of Artisan Select i.e., Artisan Select and Al Frank go up and down completely randomly.
Pair Corralation between Artisan Select and Al Frank
Assuming the 90 days horizon Artisan Select Equity is expected to generate 0.28 times more return on investment than Al Frank. However, Artisan Select Equity is 3.57 times less risky than Al Frank. It trades about -0.08 of its potential returns per unit of risk. Al Frank Fund is currently generating about -0.25 per unit of risk. If you would invest 1,618 in Artisan Select Equity on September 12, 2024 and sell it today you would lose (15.00) from holding Artisan Select Equity or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Select Equity vs. Al Frank Fund
Performance |
| Timeline |
| Artisan Select Equity |
| Al Frank Fund |
Artisan Select and Al Frank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Al Frank
The main advantage of trading using opposite Artisan Select and Al Frank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Al Frank 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 Al Frank will offset losses from the drop in Al Frank'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 |
| Al Frank vs. Goldman Sachs Inflation | Al Frank vs. Guidepath Managed Futures | Al Frank vs. Ab Bond Inflation | Al Frank vs. Short Duration Inflation |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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