Correlation Between Artisan International and Total Return
Can any of the company-specific risk be diversified away by investing in both Artisan International and Total Return 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 International and Total Return into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan International Fund and Total Return Fund, you can compare the effects of market volatilities on Artisan International and Total Return 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 International with a short position of Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan International and Total Return.
Diversification Opportunities for Artisan International and Total Return
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Artisan and Total is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Artisan International Fund and Total Return Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return and Artisan International 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 International Fund are associated (or correlated) with Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return has no effect on the direction of Artisan International i.e., Artisan International and Total Return go up and down completely randomly.
Pair Corralation between Artisan International and Total Return
Assuming the 90 days horizon Artisan International Fund is expected to generate 1.26 times more return on investment than Total Return. However, Artisan International is 1.26 times more volatile than Total Return Fund. It trades about 0.1 of its potential returns per unit of risk. Total Return Fund is currently generating about 0.07 per unit of risk. If you would invest 2,701 in Artisan International Fund on October 23, 2024 and sell it today you would earn a total of 23.00 from holding Artisan International Fund or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan International Fund vs. Total Return Fund
Performance |
| Timeline |
| Artisan International |
| Total Return |
Artisan International and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan International and Total Return
The main advantage of trading using opposite Artisan International and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan International position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return's long position.| Artisan International vs. Artisan Mid Cap | Artisan International vs. Oakmark International Fund | Artisan International vs. Selected American Shares | Artisan International vs. Dodge International Stock |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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