Correlation Between Artisan Global and Akre Focus
Can any of the company-specific risk be diversified away by investing in both Artisan Global and Akre Focus 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 Global and Akre Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Value and Akre Focus Fund, you can compare the effects of market volatilities on Artisan Global and Akre Focus 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 Global with a short position of Akre Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Akre Focus.
Diversification Opportunities for Artisan Global and Akre Focus
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Akre is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Value and Akre Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akre Focus Fund and Artisan Global 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 Global Value are associated (or correlated) with Akre Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akre Focus Fund has no effect on the direction of Artisan Global i.e., Artisan Global and Akre Focus go up and down completely randomly.
Pair Corralation between Artisan Global and Akre Focus
Assuming the 90 days horizon Artisan Global Value is expected to generate 0.69 times more return on investment than Akre Focus. However, Artisan Global Value is 1.44 times less risky than Akre Focus. It trades about 0.24 of its potential returns per unit of risk. Akre Focus Fund is currently generating about 0.02 per unit of risk. If you would invest 2,359 in Artisan Global Value on November 28, 2024 and sell it today you would earn a total of 64.00 from holding Artisan Global Value or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Global Value vs. Akre Focus Fund
Performance |
| Timeline |
| Artisan Global Value |
| Akre Focus Fund |
Artisan Global and Akre Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Akre Focus
The main advantage of trading using opposite Artisan Global and Akre Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Akre Focus 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 Akre Focus will offset losses from the drop in Akre Focus' long position.| Artisan Global vs. Artisan Global Value | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Global Opportunities | Artisan Global vs. Poplar Forest Partners |
| Akre Focus vs. Akre Focus Fund | Akre Focus vs. Akre Focus Fund | Akre Focus vs. T Rowe Price | Akre Focus vs. Aqr Diversified Arbitrage |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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