Correlation Between Small-company Stock and Artisan Value
Can any of the company-specific risk be diversified away by investing in both Small-company Stock 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 Small-company Stock and Artisan Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Company Stock Fund and Artisan Value Fund, you can compare the effects of market volatilities on Small-company Stock 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 Small-company Stock with a short position of Artisan Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small-company Stock and Artisan Value.
Diversification Opportunities for Small-company Stock and Artisan Value
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Small-company and Artisan is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Small Company Stock Fund and Artisan Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Value and Small-company Stock 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 Small Company Stock Fund 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 Small-company Stock i.e., Small-company Stock and Artisan Value go up and down completely randomly.
Pair Corralation between Small-company Stock and Artisan Value
Assuming the 90 days horizon Small-company Stock is expected to generate 1.54 times less return on investment than Artisan Value. In addition to that, Small-company Stock is 1.59 times more volatile than Artisan Value Fund. It trades about 0.04 of its total potential returns per unit of risk. Artisan Value Fund is currently generating about 0.1 per unit of volatility. If you would invest 1,116 in Artisan Value Fund on August 30, 2024 and sell it today you would earn a total of 495.00 from holding Artisan Value Fund or generate 44.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Small Company Stock Fund vs. Artisan Value Fund
Performance |
| Timeline |
| Small-company Stock |
| Artisan Value |
Small-company Stock and Artisan Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small-company Stock and Artisan Value
The main advantage of trading using opposite Small-company Stock and Artisan Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small-company Stock 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.| Small-company Stock vs. Vanguard Small Cap Index | Small-company Stock vs. T Rowe Price | Small-company Stock vs. HUMANA INC | Small-company Stock vs. Aquagold International |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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