Correlation Between Artisan High and High-yield Municipal
Can any of the company-specific risk be diversified away by investing in both Artisan High and High-yield Municipal 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 High and High-yield Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan High Income and High Yield Municipal Fund, you can compare the effects of market volatilities on Artisan High and High-yield Municipal 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 High with a short position of High-yield Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and High-yield Municipal.
Diversification Opportunities for Artisan High and High-yield Municipal
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Artisan and High-yield is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and High Yield Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Municipal and Artisan High 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 High Income are associated (or correlated) with High-yield Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Municipal has no effect on the direction of Artisan High i.e., Artisan High and High-yield Municipal go up and down completely randomly.
Pair Corralation between Artisan High and High-yield Municipal
Assuming the 90 days horizon Artisan High Income is expected to generate 1.06 times more return on investment than High-yield Municipal. However, Artisan High is 1.06 times more volatile than High Yield Municipal Fund. It trades about 0.14 of its potential returns per unit of risk. High Yield Municipal Fund is currently generating about 0.08 per unit of risk. If you would invest 747.00 in Artisan High Income on September 2, 2024 and sell it today you would earn a total of 170.00 from holding Artisan High Income or generate 22.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan High Income vs. High Yield Municipal Fund
Performance |
| Timeline |
| Artisan High Income |
| High Yield Municipal |
Artisan High and High-yield Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan High and High-yield Municipal
The main advantage of trading using opposite Artisan High and High-yield Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan High position performs unexpectedly, High-yield Municipal 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 High-yield Municipal will offset losses from the drop in High-yield Municipal's long position.| Artisan High vs. Small Midcap Dividend Income | Artisan High vs. Chartwell Small Cap | Artisan High vs. The Hartford Small | Artisan High vs. Touchstone Small Cap |
| High-yield Municipal vs. High Yield Fund Investor | High-yield Municipal vs. Intermediate Term Tax Free Bond | High-yield Municipal vs. California High Yield Municipal | High-yield Municipal vs. T Rowe Price |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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