Correlation Between Artisan Small and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Sterling Capital 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 Sterling Capital 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 Sterling Capital Porate, you can compare the effects of market volatilities on Artisan Small and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Sterling Capital.
Diversification Opportunities for Artisan Small and Sterling Capital
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Artisan and Sterling is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Sterling Capital Porate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Porate 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Porate has no effect on the direction of Artisan Small i.e., Artisan Small and Sterling Capital go up and down completely randomly.
Pair Corralation between Artisan Small and Sterling Capital
Assuming the 90 days horizon Artisan Small Cap is expected to generate 1.93 times more return on investment than Sterling Capital. However, Artisan Small is 1.93 times more volatile than Sterling Capital Porate. It trades about 0.26 of its potential returns per unit of risk. Sterling Capital Porate is currently generating about 0.18 per unit of risk. If you would invest 3,704 in Artisan Small Cap on September 2, 2024 and sell it today you would earn a total of 298.00 from holding Artisan Small Cap or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Sterling Capital Porate
Performance |
| Timeline |
| Artisan Small Cap |
| Sterling Capital Porate |
Artisan Small and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Sterling Capital
The main advantage of trading using opposite Artisan Small and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital'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 |
| Sterling Capital vs. Artisan Small Cap | Sterling Capital vs. Eip Growth And | Sterling Capital vs. Small Pany Growth | Sterling Capital vs. Touchstone Small Cap |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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