Correlation Between Artisan Small and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Growth Strategy 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 Growth Strategy 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 Growth Strategy Fund, you can compare the effects of market volatilities on Artisan Small and Growth Strategy 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 Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Growth Strategy.
Diversification Opportunities for Artisan Small and Growth Strategy
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Growth is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy 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 Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Artisan Small i.e., Artisan Small and Growth Strategy go up and down completely randomly.
Pair Corralation between Artisan Small and Growth Strategy
Assuming the 90 days horizon Artisan Small Cap is expected to generate 2.14 times more return on investment than Growth Strategy. However, Artisan Small is 2.14 times more volatile than Growth Strategy Fund. It trades about 0.12 of its potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.1 per unit of risk. If you would invest 3,286 in Artisan Small Cap on September 2, 2024 and sell it today you would earn a total of 716.00 from holding Artisan Small Cap or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Growth Strategy Fund
Performance |
| Timeline |
| Artisan Small Cap |
| Growth Strategy |
Artisan Small and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Growth Strategy
The main advantage of trading using opposite Artisan Small and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Artisan Small vs. Artisan Thematic Fund | Artisan Small vs. Artisan Floating Rate | Artisan Small vs. Artisan Global Unconstrained | Artisan Small vs. Artisan Emerging Markets |
| Growth Strategy vs. Qs Growth Fund | Growth Strategy vs. Tfa Alphagen Growth | Growth Strategy vs. Artisan Small Cap | Growth Strategy vs. Nationwide Growth Fund |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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