Correlation Between Cambiar Small and Artisan Value
Can any of the company-specific risk be diversified away by investing in both Cambiar Small and Artisan 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 Cambiar Small and Artisan Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambiar Small Cap and Artisan Value Fund, you can compare the effects of market volatilities on Cambiar Small and Artisan 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 Cambiar Small with a short position of Artisan Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambiar Small and Artisan Value.
Diversification Opportunities for Cambiar Small and Artisan Value
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cambiar and Artisan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Cambiar Small Cap and Artisan Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Value and Cambiar 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 Cambiar Small Cap are associated (or correlated) with Artisan Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Value has no effect on the direction of Cambiar Small i.e., Cambiar Small and Artisan Value go up and down completely randomly.
Pair Corralation between Cambiar Small and Artisan Value
Assuming the 90 days horizon Cambiar Small Cap is expected to generate 2.01 times more return on investment than Artisan Value. However, Cambiar Small is 2.01 times more volatile than Artisan Value Fund. It trades about 0.3 of its potential returns per unit of risk. Artisan Value Fund is currently generating about 0.35 per unit of risk. If you would invest 1,660 in Cambiar Small Cap on September 1, 2024 and sell it today you would earn a total of 157.00 from holding Cambiar Small Cap or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cambiar Small Cap vs. Artisan Value Fund
Performance |
| Timeline |
| Cambiar Small Cap |
| Artisan Value |
Cambiar Small and Artisan Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambiar Small and Artisan Value
The main advantage of trading using opposite Cambiar Small and Artisan Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambiar Small position performs unexpectedly, Artisan 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 Artisan Value will offset losses from the drop in Artisan Value's long position.| Cambiar Small vs. Jpmorgan Dynamic Small | Cambiar Small vs. Cambiar Opportunity Fund | Cambiar Small vs. Virtus Emerging Markets | Cambiar Small vs. Cambiar International Equity |
| Artisan Value vs. Artisan International Value | Artisan Value vs. Artisan Global Opportunities | Artisan Value vs. Artisan Global Value | Artisan Value vs. Small Company Stock Fund |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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