Correlation Between Pear Tree and Artisan Global
Can any of the company-specific risk be diversified away by investing in both Pear Tree and Artisan Global 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 Pear Tree and Artisan Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pear Tree Polaris and Artisan Global Value, you can compare the effects of market volatilities on Pear Tree and Artisan Global 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 Pear Tree with a short position of Artisan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pear Tree and Artisan Global.
Diversification Opportunities for Pear Tree and Artisan Global
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pear and Artisan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Pear Tree Polaris and Artisan Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Global Value and Pear Tree 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 Pear Tree Polaris are associated (or correlated) with Artisan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Global Value has no effect on the direction of Pear Tree i.e., Pear Tree and Artisan Global go up and down completely randomly.
Pair Corralation between Pear Tree and Artisan Global
Assuming the 90 days horizon Pear Tree is expected to generate 1.45 times less return on investment than Artisan Global. In addition to that, Pear Tree is 1.19 times more volatile than Artisan Global Value. It trades about 0.24 of its total potential returns per unit of risk. Artisan Global Value is currently generating about 0.4 per unit of volatility. If you would invest 2,235 in Artisan Global Value on November 9, 2024 and sell it today you would earn a total of 137.00 from holding Artisan Global Value or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pear Tree Polaris vs. Artisan Global Value
Performance |
| Timeline |
| Pear Tree Polaris |
| Artisan Global Value |
Pear Tree and Artisan Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pear Tree and Artisan Global
The main advantage of trading using opposite Pear Tree and Artisan Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pear Tree position performs unexpectedly, Artisan Global 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 Global will offset losses from the drop in Artisan Global's long position.| Pear Tree vs. Wasatch E Growth | Pear Tree vs. Tcw E Fixed | Pear Tree vs. Tcw Relative Value | Pear Tree vs. Amg Managers Loomis |
| Artisan Global vs. Artisan Global Opportunities | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Global Equity | Artisan Global vs. Oakmark Global Select |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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