Correlation Between Artisan Small and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Old Westbury 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 Old Westbury 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 Old Westbury Fixed, you can compare the effects of market volatilities on Artisan Small and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Old Westbury.
Diversification Opportunities for Artisan Small and Old Westbury
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Artisan and Old is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Old Westbury Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Fixed 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Fixed has no effect on the direction of Artisan Small i.e., Artisan Small and Old Westbury go up and down completely randomly.
Pair Corralation between Artisan Small and Old Westbury
Assuming the 90 days horizon Artisan Small Cap is expected to generate 4.43 times more return on investment than Old Westbury. However, Artisan Small is 4.43 times more volatile than Old Westbury Fixed. It trades about 0.03 of its potential returns per unit of risk. Old Westbury Fixed is currently generating about 0.03 per unit of risk. If you would invest 3,188 in Artisan Small Cap on October 18, 2024 and sell it today you would earn a total of 438.00 from holding Artisan Small Cap or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Old Westbury Fixed
Performance |
| Timeline |
| Artisan Small Cap |
| Old Westbury Fixed |
Artisan Small and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Old Westbury
The main advantage of trading using opposite Artisan Small and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury'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 |
| Old Westbury vs. Champlain Small | Old Westbury vs. Kinetics Small Cap | Old Westbury vs. Rbc Small Cap | Old Westbury vs. Artisan Small Cap |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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