Correlation Between Artisan International and Value Fund
Can any of the company-specific risk be diversified away by investing in both Artisan International and Value Fund 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 Value Fund 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 Value Fund Investor, you can compare the effects of market volatilities on Artisan International and Value Fund 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 Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan International and Value Fund.
Diversification Opportunities for Artisan International and Value Fund
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Artisan and Value is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Artisan International Fund and Value Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund Investor 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 Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund Investor has no effect on the direction of Artisan International i.e., Artisan International and Value Fund go up and down completely randomly.
Pair Corralation between Artisan International and Value Fund
Assuming the 90 days horizon Artisan International Fund is expected to under-perform the Value Fund. But the mutual fund apears to be less risky and, when comparing its historical volatility, Artisan International Fund is 1.03 times less risky than Value Fund. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Value Fund Investor is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 862.00 in Value Fund Investor on August 28, 2024 and sell it today you would earn a total of 23.00 from holding Value Fund Investor or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan International Fund vs. Value Fund Investor
Performance |
| Timeline |
| Artisan International |
| Value Fund Investor |
Artisan International and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan International and Value Fund
The main advantage of trading using opposite Artisan International and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan International position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund'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 |
| Value Fund vs. International Growth Fund | Value Fund vs. Growth Fund Investor | Value Fund vs. Equity Income Fund | Value Fund vs. Ultra Fund Investor |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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