Correlation Between Artisan International and Artisan Small
Can any of the company-specific risk be diversified away by investing in both Artisan International and Artisan Small 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 Artisan Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan International Value and Artisan Small Cap, you can compare the effects of market volatilities on Artisan International and Artisan Small 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 Artisan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan International and Artisan Small.
Diversification Opportunities for Artisan International and Artisan Small
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ARTISAN and Artisan is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Artisan International Value and Artisan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Small Cap 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 Value are associated (or correlated) with Artisan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Small Cap has no effect on the direction of Artisan International i.e., Artisan International and Artisan Small go up and down completely randomly.
Pair Corralation between Artisan International and Artisan Small
Assuming the 90 days horizon Artisan International Value is expected to under-perform the Artisan Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Artisan International Value is 1.73 times less risky than Artisan Small. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Artisan Small Cap is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,605 in Artisan Small Cap on September 1, 2024 and sell it today you would earn a total of 350.00 from holding Artisan Small Cap or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan International Value vs. Artisan Small Cap
Performance |
| Timeline |
| Artisan International |
| Artisan Small Cap |
Artisan International and Artisan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan International and Artisan Small
The main advantage of trading using opposite Artisan International and Artisan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan International position performs unexpectedly, Artisan Small 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 Artisan Small will offset losses from the drop in Artisan Small's long position.| Artisan International vs. Artisan Mid Cap | Artisan International vs. Artisan International Small | Artisan International vs. Oakmark International Small | Artisan International vs. Artisan Global Value |
| Artisan Small vs. Artisan Thematic Fund | Artisan Small vs. Artisan Floating Rate | Artisan Small vs. Artisan Global Unconstrained | Artisan Small vs. Artisan Emerging Markets |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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