Correlation Between Artisan Small and Growth Opportunities
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Growth Opportunities 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 Opportunities 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 Opportunities Fund, you can compare the effects of market volatilities on Artisan Small and Growth Opportunities 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 Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Growth Opportunities.
Diversification Opportunities for Artisan Small and Growth Opportunities
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and GROWTH is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Growth Opportunities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Opportunities 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 Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Opportunities has no effect on the direction of Artisan Small i.e., Artisan Small and Growth Opportunities go up and down completely randomly.
Pair Corralation between Artisan Small and Growth Opportunities
Assuming the 90 days horizon Artisan Small Cap is expected to generate 1.5 times more return on investment than Growth Opportunities. However, Artisan Small is 1.5 times more volatile than Growth Opportunities Fund. It trades about 0.26 of its potential returns per unit of risk. Growth Opportunities Fund is currently generating about 0.3 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Growth Opportunities Fund
Performance |
| Timeline |
| Artisan Small Cap |
| Growth Opportunities |
Artisan Small and Growth Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Growth Opportunities
The main advantage of trading using opposite Artisan Small and Growth Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Growth Opportunities 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 Opportunities will offset losses from the drop in Growth Opportunities' 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 Opportunities vs. Mid Cap Value Profund | Growth Opportunities vs. Mutual Of America | Growth Opportunities vs. American Century Etf | Growth Opportunities vs. Heartland Value Plus |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |