Correlation Between Dana Large and Artisan Small
Can any of the company-specific risk be diversified away by investing in both Dana Large and Artisan Small 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 Dana Large and Artisan Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Artisan Small Cap, you can compare the effects of market volatilities on Dana Large and Artisan Small 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 Dana Large with a short position of Artisan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Artisan Small.
Diversification Opportunities for Dana Large and Artisan Small
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dana and Artisan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Artisan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Small Cap and Dana Large 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 Dana Large Cap are associated (or correlated) with Artisan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Small Cap has no effect on the direction of Dana Large i.e., Dana Large and Artisan Small go up and down completely randomly.
Pair Corralation between Dana Large and Artisan Small
Assuming the 90 days horizon Dana Large Cap is expected to generate 0.6 times more return on investment than Artisan Small. However, Dana Large Cap is 1.67 times less risky than Artisan Small. It trades about 0.1 of its potential returns per unit of risk. Artisan Small Cap is currently generating about 0.04 per unit of risk. If you would invest 1,821 in Dana Large Cap on September 3, 2024 and sell it today you would earn a total of 889.00 from holding Dana Large Cap or generate 48.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. Artisan Small Cap
Performance |
| Timeline |
| Dana Large Cap |
| Artisan Small Cap |
Dana Large and Artisan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Artisan Small
The main advantage of trading using opposite Dana Large and Artisan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Artisan Small 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 Small will offset losses from the drop in Artisan Small's long position.| Dana Large vs. Msift High Yield | Dana Large vs. Gmo High Yield | Dana Large vs. Guggenheim High Yield | Dana Large vs. Pgim High Yield |
| Artisan Small vs. Vanguard Windsor Fund | Artisan Small vs. Americafirst Large Cap | Artisan Small vs. Transamerica Large Cap | Artisan Small vs. Dana Large 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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