Correlation Between DWS Municipal and Artisan Partners
Can any of the company-specific risk be diversified away by investing in both DWS Municipal 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 DWS Municipal and Artisan Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DWS Municipal Income and Artisan Partners Asset, you can compare the effects of market volatilities on DWS Municipal 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 DWS Municipal with a short position of Artisan Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of DWS Municipal and Artisan Partners.
Diversification Opportunities for DWS Municipal and Artisan Partners
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DWS and Artisan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding DWS Municipal Income 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 DWS Municipal 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 DWS Municipal Income 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 DWS Municipal i.e., DWS Municipal and Artisan Partners go up and down completely randomly.
Pair Corralation between DWS Municipal and Artisan Partners
Considering the 90-day investment horizon DWS Municipal is expected to generate 9.35 times less return on investment than Artisan Partners. But when comparing it to its historical volatility, DWS Municipal Income is 3.89 times less risky than Artisan Partners. It trades about 0.09 of its potential returns per unit of risk. Artisan Partners Asset is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,245 in Artisan Partners Asset on August 24, 2024 and sell it today you would earn a total of 501.00 from holding Artisan Partners Asset or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DWS Municipal Income vs. Artisan Partners Asset
Performance |
| Timeline |
| DWS Municipal Income |
| Artisan Partners Asset |
DWS Municipal and Artisan Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DWS Municipal and Artisan Partners
The main advantage of trading using opposite DWS Municipal and Artisan Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DWS Municipal 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.| DWS Municipal vs. Pioneer Floating Rate | DWS Municipal vs. The Gabelli Equity | DWS Municipal vs. Pioneer Municipal High | DWS Municipal vs. Nuveen Global High |
| Artisan Partners vs. DWS Municipal Income | Artisan Partners vs. Blackrock Munivest | Artisan Partners vs. SEI Investments | Artisan Partners vs. SCOR PK |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |