Correlation Between Growth Fund and Artisan Focus
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Artisan Focus 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 Growth Fund and Artisan Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Artisan Focus, you can compare the effects of market volatilities on Growth Fund and Artisan Focus 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 Growth Fund with a short position of Artisan Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Artisan Focus.
Diversification Opportunities for Growth Fund and Artisan Focus
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GROWTH and Artisan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Artisan Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Focus and Growth Fund 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 Growth Fund Of are associated (or correlated) with Artisan Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Focus has no effect on the direction of Growth Fund i.e., Growth Fund and Artisan Focus go up and down completely randomly.
Pair Corralation between Growth Fund and Artisan Focus
Assuming the 90 days horizon Growth Fund is expected to generate 1.11 times less return on investment than Artisan Focus. But when comparing it to its historical volatility, Growth Fund Of is 1.16 times less risky than Artisan Focus. It trades about 0.15 of its potential returns per unit of risk. Artisan Focus is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,422 in Artisan Focus on August 30, 2024 and sell it today you would earn a total of 85.00 from holding Artisan Focus or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Growth Fund Of vs. Artisan Focus
Performance |
| Timeline |
| Growth Fund |
| Artisan Focus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Growth Fund and Artisan Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Artisan Focus
The main advantage of trading using opposite Growth Fund and Artisan Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Artisan Focus 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 Focus will offset losses from the drop in Artisan Focus' long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Smallcap World Fund | Growth Fund vs. Washington Mutual Investors | Growth Fund vs. Aquagold International |
| Artisan Focus vs. Locorr Dynamic Equity | Artisan Focus vs. Ms Global Fixed | Artisan Focus vs. Artisan Select Equity | Artisan Focus vs. Vanguard Equity Income |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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