Correlation Between First Ship and Artisan Partners

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Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and Artisan Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Artisan Partners Asset, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of Artisan Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Artisan Partners.

Diversification Opportunities for First Ship and Artisan Partners

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between First and Artisan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease 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 First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and Artisan Partners go up and down completely randomly.

Pair Corralation between First Ship and Artisan Partners

If you would invest  4,221  in Artisan Partners Asset on September 1, 2024 and sell it today you would earn a total of  658.00  from holding Artisan Partners Asset or generate 15.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.21%
ValuesDaily Returns

First Ship Lease  vs.  Artisan Partners Asset

 Performance 
       Timeline  
First Ship Lease 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days First Ship Lease has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, First Ship is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
Artisan Partners Asset 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Partners Asset are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Artisan Partners displayed solid returns over the last few months and may actually be approaching a breakup point.

First Ship and Artisan Partners Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with First Ship and Artisan Partners

The main advantage of trading using opposite First Ship and Artisan Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.
The idea behind First Ship Lease and Artisan Partners Asset pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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