Correlation Between Artisan Small and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Eagle Growth 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 Small and Eagle Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Small Cap and Eagle Growth Income, you can compare the effects of market volatilities on Artisan Small and Eagle Growth 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 Small with a short position of Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Eagle Growth.
Diversification Opportunities for Artisan Small and Eagle Growth
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Eagle is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income and Artisan Small 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 Small Cap are associated (or correlated) with Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Artisan Small i.e., Artisan Small and Eagle Growth go up and down completely randomly.
Pair Corralation between Artisan Small and Eagle Growth
Assuming the 90 days horizon Artisan Small Cap is expected to generate 1.94 times more return on investment than Eagle Growth. However, Artisan Small is 1.94 times more volatile than Eagle Growth Income. It trades about 0.26 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.34 per unit of risk. If you would invest 3,731 in Artisan Small Cap on September 3, 2024 and sell it today you would earn a total of 286.00 from holding Artisan Small Cap or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Eagle Growth Income
Performance |
| Timeline |
| Artisan Small Cap |
| Eagle Growth Income |
Artisan Small and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Eagle Growth
The main advantage of trading using opposite Artisan Small and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Eagle Growth 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.| Artisan Small vs. Vanguard Windsor Fund | Artisan Small vs. Americafirst Large Cap | Artisan Small vs. Transamerica Large Cap | Artisan Small vs. Dana Large Cap |
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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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