Correlation Between Federated Premier and Artisan Partners
Can any of the company-specific risk be diversified away by investing in both Federated Premier and Artisan Partners 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 Federated Premier and Artisan Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Premier Municipal and Artisan Partners Asset, you can compare the effects of market volatilities on Federated Premier and Artisan Partners 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 Federated Premier with a short position of Artisan Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Premier and Artisan Partners.
Diversification Opportunities for Federated Premier and Artisan Partners
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federated and Artisan is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Federated Premier Municipal and Artisan Partners Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Partners Asset and Federated Premier 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 Federated Premier Municipal are associated (or correlated) with Artisan Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Partners Asset has no effect on the direction of Federated Premier i.e., Federated Premier and Artisan Partners go up and down completely randomly.
Pair Corralation between Federated Premier and Artisan Partners
Considering the 90-day investment horizon Federated Premier Municipal is expected to under-perform the Artisan Partners. But the fund apears to be less risky and, when comparing its historical volatility, Federated Premier Municipal is 3.27 times less risky than Artisan Partners. The fund trades about -0.1 of its potential returns per unit of risk. The Artisan Partners Asset is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 4,372 in Artisan Partners Asset on August 28, 2024 and sell it today you would earn a total of 422.00 from holding Artisan Partners Asset or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Premier Municipal vs. Artisan Partners Asset
Performance |
| Timeline |
| Federated Premier |
| Artisan Partners Asset |
Federated Premier and Artisan Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Premier and Artisan Partners
The main advantage of trading using opposite Federated Premier and Artisan Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Premier position performs unexpectedly, Artisan Partners 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 Partners will offset losses from the drop in Artisan Partners' long position.| Federated Premier vs. DTF Tax Free | Federated Premier vs. MFS High Yield | Federated Premier vs. MFS High Income | Federated Premier vs. John Hancock Income |
| Artisan Partners vs. Federated Premier Municipal | Artisan Partners vs. Blackrock Muniyield | Artisan Partners vs. Diamond Hill Investment | Artisan Partners vs. NXG NextGen Infrastructure |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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