Correlation Between Steward Large and Artisan Small
Can any of the company-specific risk be diversified away by investing in both Steward Large and Artisan Small 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 Steward Large and Artisan Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steward Large Cap and Artisan Small Cap, you can compare the effects of market volatilities on Steward Large and Artisan Small 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 Steward Large with a short position of Artisan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steward Large and Artisan Small.
Diversification Opportunities for Steward Large and Artisan Small
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Steward and Artisan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Steward Large Cap and Artisan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Small Cap and Steward Large 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 Steward Large Cap are associated (or correlated) with Artisan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Small Cap has no effect on the direction of Steward Large i.e., Steward Large and Artisan Small go up and down completely randomly.
Pair Corralation between Steward Large and Artisan Small
Assuming the 90 days horizon Steward Large Cap is expected to generate 0.62 times more return on investment than Artisan Small. However, Steward Large Cap is 1.62 times less risky than Artisan Small. It trades about 0.12 of its potential returns per unit of risk. Artisan Small Cap is currently generating about 0.07 per unit of risk. If you would invest 2,573 in Steward Large Cap on September 1, 2024 and sell it today you would earn a total of 484.00 from holding Steward Large Cap or generate 18.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Steward Large Cap vs. Artisan Small Cap
Performance |
| Timeline |
| Steward Large Cap |
| Artisan Small Cap |
Steward Large and Artisan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steward Large and Artisan Small
The main advantage of trading using opposite Steward Large and Artisan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steward Large position performs unexpectedly, Artisan Small 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 Small will offset losses from the drop in Artisan Small's long position.| Steward Large vs. Pnc Emerging Markets | Steward Large vs. Rbc Emerging Markets | Steward Large vs. Siit Emerging Markets | Steward Large vs. Aqr Sustainable Long Short |
| Artisan Small vs. Artisan Thematic Fund | Artisan Small vs. Artisan Floating Rate | Artisan Small vs. Artisan Global Unconstrained | Artisan Small vs. Artisan Emerging Markets |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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