Correlation Between Artisan Global and Oberweis Micro
Can any of the company-specific risk be diversified away by investing in both Artisan Global and Oberweis Micro 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 Oberweis Micro 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 Oberweis Micro Cap Fund, you can compare the effects of market volatilities on Artisan Global and Oberweis Micro 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 Oberweis Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Oberweis Micro.
Diversification Opportunities for Artisan Global and Oberweis Micro
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Oberweis is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Opportunities and Oberweis Micro Cap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Micro 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 Oberweis Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Micro Cap has no effect on the direction of Artisan Global i.e., Artisan Global and Oberweis Micro go up and down completely randomly.
Pair Corralation between Artisan Global and Oberweis Micro
Assuming the 90 days horizon Artisan Global is expected to generate 3.61 times less return on investment than Oberweis Micro. But when comparing it to its historical volatility, Artisan Global Opportunities is 2.08 times less risky than Oberweis Micro. It trades about 0.19 of its potential returns per unit of risk. Oberweis Micro Cap Fund is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 4,467 in Oberweis Micro Cap Fund on September 2, 2024 and sell it today you would earn a total of 470.00 from holding Oberweis Micro Cap Fund or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Global Opportunities vs. Oberweis Micro Cap Fund
Performance |
| Timeline |
| Artisan Global Oppor |
| Oberweis Micro Cap |
Artisan Global and Oberweis Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Oberweis Micro
The main advantage of trading using opposite Artisan Global and Oberweis Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Oberweis Micro 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 Oberweis Micro will offset losses from the drop in Oberweis Micro'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 |
| Oberweis Micro vs. Oberweis Emerging Growth | Oberweis Micro vs. Oberweis Small Cap Opportunities | Oberweis Micro vs. Ultra Small Pany Fund | Oberweis Micro vs. Perritt Microcap Opportunities |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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