Correlation Between Artisan High and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Artisan High and Stone Harbor 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 Stone Harbor 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 Stone Harbor Emerging, you can compare the effects of market volatilities on Artisan High and Stone Harbor 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 Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Stone Harbor.
Diversification Opportunities for Artisan High and Stone Harbor
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Artisan and Stone is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and Stone Harbor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Emerging 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 Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor Emerging has no effect on the direction of Artisan High i.e., Artisan High and Stone Harbor go up and down completely randomly.
Pair Corralation between Artisan High and Stone Harbor
Assuming the 90 days horizon Artisan High is expected to generate 1.71 times less return on investment than Stone Harbor. But when comparing it to its historical volatility, Artisan High Income is 1.7 times less risky than Stone Harbor. It trades about 0.31 of its potential returns per unit of risk. Stone Harbor Emerging is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 472.00 in Stone Harbor Emerging on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Stone Harbor Emerging or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan High Income vs. Stone Harbor Emerging
Performance |
| Timeline |
| Artisan High Income |
| Stone Harbor Emerging |
Artisan High and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan High and Stone Harbor
The main advantage of trading using opposite Artisan High and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan High position performs unexpectedly, Stone Harbor 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 Stone Harbor will offset losses from the drop in Stone Harbor's long position.| Artisan High vs. Artisan Value Income | Artisan High vs. Artisan Developing World | Artisan High vs. Artisan Thematic Fund | Artisan High vs. Artisan Small Cap |
| Stone Harbor vs. Angel Oak Multi Strategy | Stone Harbor vs. Franklin Emerging Market | Stone Harbor vs. Dws Emerging Markets | Stone Harbor vs. Nasdaq 100 2x Strategy |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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