Correlation Between Artisan Value and Western Asset
Can any of the company-specific risk be diversified away by investing in both Artisan Value and Western Asset 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 Value and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Value Fund and Western Asset Municipal, you can compare the effects of market volatilities on Artisan Value and Western Asset 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 Value with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Value and Western Asset.
Diversification Opportunities for Artisan Value and Western Asset
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Artisan and Western is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Value Fund and Western Asset Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Municipal and Artisan Value 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 Value Fund are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Municipal has no effect on the direction of Artisan Value i.e., Artisan Value and Western Asset go up and down completely randomly.
Pair Corralation between Artisan Value and Western Asset
Assuming the 90 days horizon Artisan Value Fund is expected to generate 3.18 times more return on investment than Western Asset. However, Artisan Value is 3.18 times more volatile than Western Asset Municipal. It trades about 0.05 of its potential returns per unit of risk. Western Asset Municipal is currently generating about 0.0 per unit of risk. If you would invest 1,356 in Artisan Value Fund on September 12, 2024 and sell it today you would earn a total of 120.00 from holding Artisan Value Fund or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Artisan Value Fund vs. Western Asset Municipal
Performance |
| Timeline |
| Artisan Value |
| Western Asset Municipal |
Artisan Value and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Value and Western Asset
The main advantage of trading using opposite Artisan Value and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Value position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Artisan Value vs. Eagle Mlp Strategy | Artisan Value vs. Ep Emerging Markets | Artisan Value vs. Black Oak Emerging | Artisan Value vs. Investec Emerging Markets |
| Western Asset vs. Barings Active Short | Western Asset vs. Cmg Ultra Short | Western Asset vs. Blackrock Short Term Inflat Protected | Western Asset vs. Rbc Short Duration |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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