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 Behavioral, 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
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Sterling is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Sterling Capital Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Beh 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 Beh 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 0.96 times more return on investment than Sterling Capital. However, Artisan Small Cap is 1.04 times less risky than Sterling Capital. It trades about 0.31 of its potential returns per unit of risk. Sterling Capital Behavioral is currently generating about 0.27 per unit of risk. If you would invest 3,648 in Artisan Small Cap on September 1, 2024 and sell it today you would earn a total of 354.00 from holding Artisan Small Cap or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Artisan Small Cap vs. Sterling Capital Behavioral
Performance |
| Timeline |
| Artisan Small Cap |
| Sterling Capital Beh |
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. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |