Correlation Between Artisan Emerging and Nasdaq-100(r)
Can any of the company-specific risk be diversified away by investing in both Artisan Emerging and Nasdaq-100(r) 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 Nasdaq-100(r) 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 Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on Artisan Emerging and Nasdaq-100(r) 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 Nasdaq-100(r). Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and Nasdaq-100(r).
Diversification Opportunities for Artisan Emerging and Nasdaq-100(r)
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Nasdaq-100(r) is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x 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 Nasdaq-100(r). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Nasdaq-100(r) go up and down completely randomly.
Pair Corralation between Artisan Emerging and Nasdaq-100(r)
Assuming the 90 days horizon Artisan Emerging is expected to generate 6.68 times less return on investment than Nasdaq-100(r). But when comparing it to its historical volatility, Artisan Emerging Markets is 12.0 times less risky than Nasdaq-100(r). It trades about 0.13 of its potential returns per unit of risk. Nasdaq 100 2x Strategy is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 48,171 in Nasdaq 100 2x Strategy on September 1, 2024 and sell it today you would earn a total of 9,890 from holding Nasdaq 100 2x Strategy or generate 20.53% 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. Nasdaq 100 2x Strategy
Performance |
| Timeline |
| Artisan Emerging Markets |
| Nasdaq 100 2x |
Artisan Emerging and Nasdaq-100(r) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Emerging and Nasdaq-100(r)
The main advantage of trading using opposite Artisan Emerging and Nasdaq-100(r) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Emerging position performs unexpectedly, Nasdaq-100(r) 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 Nasdaq-100(r) will offset losses from the drop in Nasdaq-100(r)'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 |
| Nasdaq-100(r) vs. Nasdaq 100 2x Strategy | Nasdaq-100(r) vs. Direxion Monthly Nasdaq 100 | Nasdaq-100(r) vs. Ultranasdaq 100 Profund Ultranasdaq 100 | Nasdaq-100(r) vs. Nasdaq 100 2x Strategy |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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