Correlation Between Artisan Select and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Ashmore Emerging 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 Ashmore Emerging 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 Ashmore Emerging Markets, you can compare the effects of market volatilities on Artisan Select and Ashmore Emerging 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 Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Ashmore Emerging.
Diversification Opportunities for Artisan Select and Ashmore Emerging
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Artisan and Ashmore is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets 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 Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Artisan Select i.e., Artisan Select and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Artisan Select and Ashmore Emerging
Assuming the 90 days horizon Artisan Select Equity is expected to generate 2.24 times more return on investment than Ashmore Emerging. However, Artisan Select is 2.24 times more volatile than Ashmore Emerging Markets. It trades about 0.45 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.16 per unit of risk. If you would invest 1,532 in Artisan Select Equity on November 3, 2024 and sell it today you would earn a total of 111.00 from holding Artisan Select Equity or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Select Equity vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Artisan Select Equity |
| Ashmore Emerging Markets |
Artisan Select and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Ashmore Emerging
The main advantage of trading using opposite Artisan Select and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Artisan Select vs. Sp Smallcap 600 | Artisan Select vs. Small Pany Growth | Artisan Select vs. Rbc Small Cap | Artisan Select vs. Oklahoma College Savings |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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