Correlation Between Artisan Global and Litman Gregory
Can any of the company-specific risk be diversified away by investing in both Artisan Global and Litman Gregory 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 Global and Litman Gregory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Value and Litman Gregory Masters, you can compare the effects of market volatilities on Artisan Global and Litman Gregory 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 Global with a short position of Litman Gregory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Litman Gregory.
Diversification Opportunities for Artisan Global and Litman Gregory
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Artisan and Litman is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Value and Litman Gregory Masters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litman Gregory Masters and Artisan Global 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 Global Value are associated (or correlated) with Litman Gregory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litman Gregory Masters has no effect on the direction of Artisan Global i.e., Artisan Global and Litman Gregory go up and down completely randomly.
Pair Corralation between Artisan Global and Litman Gregory
Assuming the 90 days horizon Artisan Global Value is expected to generate 3.45 times more return on investment than Litman Gregory. However, Artisan Global is 3.45 times more volatile than Litman Gregory Masters. It trades about 0.07 of its potential returns per unit of risk. Litman Gregory Masters is currently generating about 0.16 per unit of risk. If you would invest 2,124 in Artisan Global Value on November 3, 2024 and sell it today you would earn a total of 246.00 from holding Artisan Global Value or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Artisan Global Value vs. Litman Gregory Masters
Performance |
| Timeline |
| Artisan Global Value |
| Litman Gregory Masters |
Artisan Global and Litman Gregory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Litman Gregory
The main advantage of trading using opposite Artisan Global and Litman Gregory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Litman Gregory 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 Litman Gregory will offset losses from the drop in Litman Gregory's long position.| Artisan Global vs. Artisan Global Opportunities | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Global Equity | Artisan Global vs. Artisan Value Fund |
| Litman Gregory vs. Litman Gregory Masters | Litman Gregory vs. Aqr Managed Futures | Litman Gregory vs. Boston Partners Longshort | Litman Gregory vs. Artisan Global Value |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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