Correlation Between Artisan High and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Artisan High and Growth Strategy 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 Growth Strategy 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 Growth Strategy Fund, you can compare the effects of market volatilities on Artisan High and Growth Strategy 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 Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Growth Strategy.
Diversification Opportunities for Artisan High and Growth Strategy
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and GROWTH is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy 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 Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Artisan High i.e., Artisan High and Growth Strategy go up and down completely randomly.
Pair Corralation between Artisan High and Growth Strategy
Assuming the 90 days horizon Artisan High is expected to generate 5.44 times less return on investment than Growth Strategy. But when comparing it to its historical volatility, Artisan High Income is 4.73 times less risky than Growth Strategy. It trades about 0.29 of its potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,167 in Growth Strategy Fund on September 5, 2024 and sell it today you would earn a total of 42.00 from holding Growth Strategy Fund or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan High Income vs. Growth Strategy Fund
Performance |
| Timeline |
| Artisan High Income |
| Growth Strategy |
Artisan High and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan High and Growth Strategy
The main advantage of trading using opposite Artisan High and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan High position performs unexpectedly, Growth Strategy 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 Strategy will offset losses from the drop in Growth Strategy's long position.| Artisan High vs. Allianzgi Technology Fund | Artisan High vs. Hennessy Technology Fund | Artisan High vs. Science Technology Fund | Artisan High vs. Blackrock Science Technology |
| Growth Strategy vs. Sei Daily Income | Growth Strategy vs. Maryland Tax Free Bond | Growth Strategy vs. Artisan High Income | Growth Strategy vs. Angel Oak Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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