Correlation Between Artisan Small and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Mid Cap 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 Mid Cap 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 Mid Cap Value, you can compare the effects of market volatilities on Artisan Small and Mid Cap 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 Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Mid Cap.
Diversification Opportunities for Artisan Small and Mid Cap
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Mid is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Mid Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Value 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 Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Value has no effect on the direction of Artisan Small i.e., Artisan Small and Mid Cap go up and down completely randomly.
Pair Corralation between Artisan Small and Mid Cap
Assuming the 90 days horizon Artisan Small Cap is expected to generate 1.98 times more return on investment than Mid Cap. However, Artisan Small is 1.98 times more volatile than Mid Cap Value. It trades about 0.05 of its potential returns per unit of risk. Mid Cap Value is currently generating about 0.08 per unit of risk. If you would invest 3,368 in Artisan Small Cap on September 14, 2024 and sell it today you would earn a total of 492.00 from holding Artisan Small Cap or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Mid Cap Value
Performance |
| Timeline |
| Artisan Small Cap |
| Mid Cap Value |
Artisan Small and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Mid Cap
The main advantage of trading using opposite Artisan Small and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.| Artisan Small vs. Artisan Select Equity | Artisan Small vs. Artisan Developing World | Artisan Small vs. Artisan Focus | Artisan Small vs. Artisan Select Equity |
| Mid Cap vs. Mid Cap Value | Mid Cap vs. Equity Growth Fund | Mid Cap vs. Income Growth Fund | Mid Cap vs. Diversified Bond Fund |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |