Correlation Between Artisan Mid and Selected American
Can any of the company-specific risk be diversified away by investing in both Artisan Mid and Selected American 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 Mid and Selected American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Mid Cap and Selected American Shares, you can compare the effects of market volatilities on Artisan Mid and Selected American 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 Mid with a short position of Selected American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Mid and Selected American.
Diversification Opportunities for Artisan Mid and Selected American
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Selected is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Mid Cap and Selected American Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selected American Shares and Artisan Mid 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 Mid Cap are associated (or correlated) with Selected American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selected American Shares has no effect on the direction of Artisan Mid i.e., Artisan Mid and Selected American go up and down completely randomly.
Pair Corralation between Artisan Mid and Selected American
Assuming the 90 days horizon Artisan Mid Cap is expected to generate 1.03 times more return on investment than Selected American. However, Artisan Mid is 1.03 times more volatile than Selected American Shares. It trades about 0.44 of its potential returns per unit of risk. Selected American Shares is currently generating about 0.27 per unit of risk. If you would invest 3,702 in Artisan Mid Cap on September 1, 2024 and sell it today you would earn a total of 373.00 from holding Artisan Mid Cap or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Artisan Mid Cap vs. Selected American Shares
Performance |
| Timeline |
| Artisan Mid Cap |
| Selected American Shares |
Artisan Mid and Selected American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Mid and Selected American
The main advantage of trading using opposite Artisan Mid and Selected American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Mid position performs unexpectedly, Selected American 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 Selected American will offset losses from the drop in Selected American's long position.| Artisan Mid vs. Artisan International Fund | Artisan Mid vs. Artisan Mid Cap | Artisan Mid vs. Total Return Fund | Artisan Mid vs. Growth Fund Of |
| Selected American vs. Marsico Focus Fund | Selected American vs. Artisan International Fund | Selected American vs. Third Avenue Value | Selected American vs. Oakmark Select Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |