Correlation Between Artisan Emerging and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Artisan Emerging and Astor Long/short 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 Emerging and Astor Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Emerging Markets and Astor Longshort Fund, you can compare the effects of market volatilities on Artisan Emerging and Astor Long/short 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 Emerging with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and Astor Long/short.
Diversification Opportunities for Artisan Emerging and Astor Long/short
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Astor is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Artisan Emerging 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 Emerging Markets are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Astor Long/short go up and down completely randomly.
Pair Corralation between Artisan Emerging and Astor Long/short
Assuming the 90 days horizon Artisan Emerging is expected to generate 426.25 times less return on investment than Astor Long/short. But when comparing it to its historical volatility, Artisan Emerging Markets is 1.37 times less risky than Astor Long/short. It trades about 0.0 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 1,378 in Astor Longshort Fund on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Astor Longshort Fund or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Emerging Markets vs. Astor Longshort Fund
Performance |
| Timeline |
| Artisan Emerging Markets |
| Astor Long/short |
Artisan Emerging and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Emerging and Astor Long/short
The main advantage of trading using opposite Artisan Emerging and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Emerging position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Artisan Emerging vs. Small Pany Growth | Artisan Emerging vs. Artisan Small Cap | Artisan Emerging vs. Victory Rs Small | Artisan Emerging vs. Ab Small Cap |
| Astor Long/short vs. Fidelity Real Estate | Astor Long/short vs. Prudential Real Estate | Astor Long/short vs. Deutsche Real Estate | Astor Long/short vs. Virtus Real Estate |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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