Correlation Between Artisan Emerging and Kansas Municipal
Can any of the company-specific risk be diversified away by investing in both Artisan Emerging and Kansas Municipal 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 Kansas Municipal 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 Kansas Municipal Fund, you can compare the effects of market volatilities on Artisan Emerging and Kansas Municipal 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 Kansas Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and Kansas Municipal.
Diversification Opportunities for Artisan Emerging and Kansas Municipal
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artisan and Kansas is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Kansas Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kansas Municipal 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 Kansas Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kansas Municipal has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Kansas Municipal go up and down completely randomly.
Pair Corralation between Artisan Emerging and Kansas Municipal
Assuming the 90 days horizon Artisan Emerging Markets is expected to generate 0.49 times more return on investment than Kansas Municipal. However, Artisan Emerging Markets is 2.03 times less risky than Kansas Municipal. It trades about 0.09 of its potential returns per unit of risk. Kansas Municipal Fund is currently generating about -0.04 per unit of risk. If you would invest 1,035 in Artisan Emerging Markets on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Artisan Emerging Markets or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Artisan Emerging Markets vs. Kansas Municipal Fund
Performance |
| Timeline |
| Artisan Emerging Markets |
| Kansas Municipal |
Artisan Emerging and Kansas Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Emerging and Kansas Municipal
The main advantage of trading using opposite Artisan Emerging and Kansas Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Emerging position performs unexpectedly, Kansas Municipal 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 Kansas Municipal will offset losses from the drop in Kansas Municipal's long position.| Artisan Emerging vs. Fidelity New Markets | Artisan Emerging vs. HUMANA INC | Artisan Emerging vs. Aquagold International | Artisan Emerging vs. Barloworld Ltd ADR |
| Kansas Municipal vs. Artisan Emerging Markets | Kansas Municipal vs. California Bond Fund | Kansas Municipal vs. Blrc Sgy Mnp | Kansas Municipal vs. Kinetics Market Opportunities |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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