Correlation Between Artisan Small and Eic Value
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Eic 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 Small and Eic Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Small Cap and Eic Value Fund, you can compare the effects of market volatilities on Artisan Small and Eic 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 Small with a short position of Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Eic Value.
Diversification Opportunities for Artisan Small and Eic Value
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Eic is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value Fund and Artisan Small 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 Small Cap are associated (or correlated) with Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Artisan Small i.e., Artisan Small and Eic Value go up and down completely randomly.
Pair Corralation between Artisan Small and Eic Value
Assuming the 90 days horizon Artisan Small Cap is expected to generate 1.72 times more return on investment than Eic Value. However, Artisan Small is 1.72 times more volatile than Eic Value Fund. It trades about -0.11 of its potential returns per unit of risk. Eic Value Fund is currently generating about -0.21 per unit of risk. If you would invest 3,700 in Artisan Small Cap on October 14, 2024 and sell it today you would lose (115.00) from holding Artisan Small Cap or give up 3.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Eic Value Fund
Performance |
| Timeline |
| Artisan Small Cap |
| Eic Value Fund |
Artisan Small and Eic Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Eic Value
The main advantage of trading using opposite Artisan Small and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Eic 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 Eic Value will offset losses from the drop in Eic Value's long position.| Artisan Small vs. Artisan Global Opportunities | Artisan Small vs. Artisan Mid Cap | Artisan Small vs. Wasatch Ultra Growth | Artisan Small vs. Artisan International Value |
| Eic Value vs. Nasdaq 100 Profund Nasdaq 100 | Eic Value vs. Volumetric Fund Volumetric | Eic Value vs. Commodities Strategy Fund | Eic Value vs. Issachar Fund Class |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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