Correlation Between Artisan Emerging and Grant Park
Can any of the company-specific risk be diversified away by investing in both Artisan Emerging and Grant Park 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 Grant Park 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 Grant Park Multi, you can compare the effects of market volatilities on Artisan Emerging and Grant Park 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 Grant Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and Grant Park.
Diversification Opportunities for Artisan Emerging and Grant Park
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artisan and Grant is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Grant Park Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grant Park Multi 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 Grant Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grant Park Multi has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Grant Park go up and down completely randomly.
Pair Corralation between Artisan Emerging and Grant Park
Assuming the 90 days horizon Artisan Emerging Markets is expected to under-perform the Grant Park. But the mutual fund apears to be less risky and, when comparing its historical volatility, Artisan Emerging Markets is 1.07 times less risky than Grant Park. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Grant Park Multi is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,065 in Grant Park Multi on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Grant Park Multi or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Emerging Markets vs. Grant Park Multi
Performance |
| Timeline |
| Artisan Emerging Markets |
| Grant Park Multi |
Artisan Emerging and Grant Park Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Emerging and Grant Park
The main advantage of trading using opposite Artisan Emerging and Grant Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Emerging position performs unexpectedly, Grant Park 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 Grant Park will offset losses from the drop in Grant Park's long position.| Artisan Emerging vs. Fidelity New Markets | Artisan Emerging vs. Fidelity New Markets | Artisan Emerging vs. Fidelity New Markets | Artisan Emerging vs. SCOR PK |
| Grant Park vs. Pimco Trends Managed | Grant Park vs. Pimco Trends Managed | Grant Park vs. SCOR PK | Grant Park vs. Morningstar Unconstrained Allocation |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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