Correlation Between Artisan Global and Cambiar Small
Can any of the company-specific risk be diversified away by investing in both Artisan Global and Cambiar 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 Global and Cambiar Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Opportunities and Cambiar Small Cap, you can compare the effects of market volatilities on Artisan Global and Cambiar 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 Global with a short position of Cambiar Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Cambiar Small.
Diversification Opportunities for Artisan Global and Cambiar Small
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Cambiar is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Opportunities and Cambiar Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Small Cap and Artisan Global 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 Global Opportunities are associated (or correlated) with Cambiar Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Small Cap has no effect on the direction of Artisan Global i.e., Artisan Global and Cambiar Small go up and down completely randomly.
Pair Corralation between Artisan Global and Cambiar Small
Assuming the 90 days horizon Artisan Global is expected to generate 2.56 times less return on investment than Cambiar Small. But when comparing it to its historical volatility, Artisan Global Opportunities is 1.87 times less risky than Cambiar Small. It trades about 0.22 of its potential returns per unit of risk. Cambiar Small Cap is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,660 in Cambiar Small Cap on September 1, 2024 and sell it today you would earn a total of 157.00 from holding Cambiar Small Cap or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Artisan Global Opportunities vs. Cambiar Small Cap
Performance |
| Timeline |
| Artisan Global Oppor |
| Cambiar Small Cap |
Artisan Global and Cambiar Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Cambiar Small
The main advantage of trading using opposite Artisan Global and Cambiar Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Cambiar 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 Cambiar Small will offset losses from the drop in Cambiar Small's long position.| Artisan Global vs. Artisan Global Value | Artisan Global vs. Artisan Global Equity | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Small Cap |
| Cambiar Small vs. Jpmorgan Dynamic Small | Cambiar Small vs. Cambiar Opportunity Fund | Cambiar Small vs. Virtus Emerging Markets | Cambiar Small vs. Cambiar International Equity |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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