Correlation Between Pace Municipal and Artisan International
Can any of the company-specific risk be diversified away by investing in both Pace Municipal and Artisan International 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 Pace Municipal and Artisan International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace Municipal Fixed and Artisan International Fund, you can compare the effects of market volatilities on Pace Municipal and Artisan International 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 Pace Municipal with a short position of Artisan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Municipal and Artisan International.
Diversification Opportunities for Pace Municipal and Artisan International
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pace and Artisan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Pace Municipal Fixed and Artisan International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan International and Pace 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 Pace Municipal Fixed are associated (or correlated) with Artisan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan International has no effect on the direction of Pace Municipal i.e., Pace Municipal and Artisan International go up and down completely randomly.
Pair Corralation between Pace Municipal and Artisan International
Assuming the 90 days horizon Pace Municipal Fixed is expected to generate 0.15 times more return on investment than Artisan International. However, Pace Municipal Fixed is 6.6 times less risky than Artisan International. It trades about 0.1 of its potential returns per unit of risk. Artisan International Fund is currently generating about -0.02 per unit of risk. If you would invest 1,205 in Pace Municipal Fixed on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Pace Municipal Fixed or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Pace Municipal Fixed vs. Artisan International Fund
Performance |
| Timeline |
| Pace Municipal Fixed |
| Artisan International |
Pace Municipal and Artisan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Municipal and Artisan International
The main advantage of trading using opposite Pace Municipal and Artisan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace Municipal position performs unexpectedly, Artisan International 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 International will offset losses from the drop in Artisan International's long position.| Pace Municipal vs. Multisector Bond Sma | Pace Municipal vs. Franklin High Yield | Pace Municipal vs. Touchstone Premium Yield | Pace Municipal vs. Western Asset Municipal |
| Artisan International vs. Artisan Select Equity | Artisan International vs. Artisan Developing World | Artisan International vs. Artisan Focus | Artisan International vs. Artisan Small 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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