Correlation Between Artisan Select and Small-cap Value
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Small-cap Value 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 Select and Small-cap Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Select Equity and Small Cap Value Fund, you can compare the effects of market volatilities on Artisan Select and Small-cap Value 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 Select with a short position of Small-cap Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Small-cap Value.
Diversification Opportunities for Artisan Select and Small-cap Value
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Small-cap is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Small Cap Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Value and Artisan Select 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 Select Equity are associated (or correlated) with Small-cap Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Value has no effect on the direction of Artisan Select i.e., Artisan Select and Small-cap Value go up and down completely randomly.
Pair Corralation between Artisan Select and Small-cap Value
Assuming the 90 days horizon Artisan Select Equity is expected to generate 0.69 times more return on investment than Small-cap Value. However, Artisan Select Equity is 1.45 times less risky than Small-cap Value. It trades about 0.49 of its potential returns per unit of risk. Small Cap Value Fund is currently generating about 0.16 per unit of risk. If you would invest 1,536 in Artisan Select Equity on October 30, 2024 and sell it today you would earn a total of 102.00 from holding Artisan Select Equity or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Select Equity vs. Small Cap Value Fund
Performance |
| Timeline |
| Artisan Select Equity |
| Small Cap Value |
Artisan Select and Small-cap Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Small-cap Value
The main advantage of trading using opposite Artisan Select and Small-cap Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Small-cap Value 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 Small-cap Value will offset losses from the drop in Small-cap Value's long position.| Artisan Select vs. Heartland Value Plus | Artisan Select vs. Small Cap Value | Artisan Select vs. Fpa Queens Road | Artisan Select vs. Fidelity Small Cap |
| Small-cap Value vs. Federated Ohio Municipal | Small-cap Value vs. Franklin Government Money | Small-cap Value vs. Transamerica Intermediate Muni | Small-cap Value vs. Artisan High Income |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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