Correlation Between Artisan Small and International Equity
Can any of the company-specific risk be diversified away by investing in both Artisan Small and International Equity 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 International Equity 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 International Equity Index, you can compare the effects of market volatilities on Artisan Small and International Equity 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 International Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and International Equity.
Diversification Opportunities for Artisan Small and International Equity
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artisan and International is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and International Equity Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Equity 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 International Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Equity has no effect on the direction of Artisan Small i.e., Artisan Small and International Equity go up and down completely randomly.
Pair Corralation between Artisan Small and International Equity
Assuming the 90 days horizon Artisan Small Cap is expected to generate 1.65 times more return on investment than International Equity. However, Artisan Small is 1.65 times more volatile than International Equity Index. It trades about 0.05 of its potential returns per unit of risk. International Equity Index is currently generating about 0.06 per unit of risk. If you would invest 2,975 in Artisan Small Cap on September 12, 2024 and sell it today you would earn a total of 940.00 from holding Artisan Small Cap or generate 31.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. International Equity Index
Performance |
| Timeline |
| Artisan Small Cap |
| International Equity |
Artisan Small and International Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and International Equity
The main advantage of trading using opposite Artisan Small and International Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, International Equity 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 International Equity will offset losses from the drop in International Equity'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 |
| International Equity vs. Eip Growth And | International Equity vs. Praxis Growth Index | International Equity vs. Artisan Small Cap | International Equity vs. Franklin Growth 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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