Correlation Between Artisan Global and Hodges Small
Can any of the company-specific risk be diversified away by investing in both Artisan Global and Hodges 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 Hodges 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 Hodges Small Cap, you can compare the effects of market volatilities on Artisan Global and Hodges 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 Hodges Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Hodges Small.
Diversification Opportunities for Artisan Global and Hodges Small
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Hodges is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Opportunities and Hodges Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hodges 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 Hodges Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hodges Small Cap has no effect on the direction of Artisan Global i.e., Artisan Global and Hodges Small go up and down completely randomly.
Pair Corralation between Artisan Global and Hodges Small
Assuming the 90 days horizon Artisan Global is expected to generate 3.61 times less return on investment than Hodges Small. But when comparing it to its historical volatility, Artisan Global Opportunities is 2.14 times less risky than Hodges Small. It trades about 0.19 of its potential returns per unit of risk. Hodges Small Cap is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,368 in Hodges Small Cap on September 2, 2024 and sell it today you would earn a total of 249.00 from holding Hodges Small Cap or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Global Opportunities vs. Hodges Small Cap
Performance |
| Timeline |
| Artisan Global Oppor |
| Hodges Small Cap |
Artisan Global and Hodges Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Hodges Small
The main advantage of trading using opposite Artisan Global and Hodges Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Hodges 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 Hodges Small will offset losses from the drop in Hodges Small's long position.| Artisan Global vs. Artisan Global Value | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Value Fund | Artisan Global vs. Aquagold International |
| Hodges Small vs. Hodges Fund Retail | Hodges Small vs. Amg Southernsun Small | Hodges Small vs. Brown Advisory Growth | Hodges Small vs. Eventide Gilead 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance |