Correlation Between Artisan Small and Mfs Aggressive
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Mfs Aggressive 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 Mfs Aggressive 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 Mfs Aggressive Growth, you can compare the effects of market volatilities on Artisan Small and Mfs Aggressive 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 Mfs Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Mfs Aggressive.
Diversification Opportunities for Artisan Small and Mfs Aggressive
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Mfs is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Mfs Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Aggressive Growth 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 Mfs Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Aggressive Growth has no effect on the direction of Artisan Small i.e., Artisan Small and Mfs Aggressive go up and down completely randomly.
Pair Corralation between Artisan Small and Mfs Aggressive
Assuming the 90 days horizon Artisan Small Cap is expected to under-perform the Mfs Aggressive. In addition to that, Artisan Small is 3.98 times more volatile than Mfs Aggressive Growth. It trades about -0.14 of its total potential returns per unit of risk. Mfs Aggressive Growth is currently generating about -0.03 per unit of volatility. If you would invest 3,171 in Mfs Aggressive Growth on September 12, 2024 and sell it today you would lose (10.00) from holding Mfs Aggressive Growth or give up 0.32% 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. Mfs Aggressive Growth
Performance |
| Timeline |
| Artisan Small Cap |
| Mfs Aggressive Growth |
Artisan Small and Mfs Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Mfs Aggressive
The main advantage of trading using opposite Artisan Small and Mfs Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Mfs Aggressive 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 Mfs Aggressive will offset losses from the drop in Mfs Aggressive's long position.| Artisan Small vs. Third Avenue Real | Artisan Small vs. Aegis Value Fund | Artisan Small vs. Litman Gregory Masters | Artisan Small vs. Marsico Growth Fund |
| Mfs Aggressive vs. Qs Moderate Growth | Mfs Aggressive vs. Pro Blend Moderate Term | Mfs Aggressive vs. Jp Morgan Smartretirement | Mfs Aggressive vs. Fidelity Managed Retirement |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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