Correlation Between Summit Global and Artisan Emerging
Can any of the company-specific risk be diversified away by investing in both Summit Global and Artisan Emerging 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 Summit Global and Artisan Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Global Investments and Artisan Emerging Markets, you can compare the effects of market volatilities on Summit Global and Artisan Emerging 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 Summit Global with a short position of Artisan Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Artisan Emerging.
Diversification Opportunities for Summit Global and Artisan Emerging
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Summit and Artisan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments and Artisan Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Emerging Markets and Summit Global 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 Summit Global Investments are associated (or correlated) with Artisan Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Emerging Markets has no effect on the direction of Summit Global i.e., Summit Global and Artisan Emerging go up and down completely randomly.
Pair Corralation between Summit Global and Artisan Emerging
Assuming the 90 days horizon Summit Global Investments is expected to generate 2.34 times more return on investment than Artisan Emerging. However, Summit Global is 2.34 times more volatile than Artisan Emerging Markets. It trades about 0.09 of its potential returns per unit of risk. Artisan Emerging Markets is currently generating about 0.16 per unit of risk. If you would invest 3,138 in Summit Global Investments on September 12, 2024 and sell it today you would earn a total of 860.00 from holding Summit Global Investments or generate 27.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Global Investments vs. Artisan Emerging Markets
Performance |
| Timeline |
| Summit Global Investments |
| Artisan Emerging Markets |
Summit Global and Artisan Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Global and Artisan Emerging
The main advantage of trading using opposite Summit Global and Artisan Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Global position performs unexpectedly, Artisan Emerging 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 Emerging will offset losses from the drop in Artisan Emerging's long position.| Summit Global vs. Investec Emerging Markets | Summit Global vs. Mid Cap 15x Strategy | Summit Global vs. Ep Emerging Markets | Summit Global vs. Barings Emerging Markets |
| Artisan Emerging vs. Fidelity New Markets | Artisan Emerging vs. Fidelity New Markets | Artisan Emerging vs. Fidelity New Markets | Artisan Emerging 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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