Correlation Between Suburban Propane and Artisan Partners

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Suburban Propane 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 Suburban Propane and Artisan Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suburban Propane Partners and Artisan Partners Asset, you can compare the effects of market volatilities on Suburban Propane 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 Suburban Propane with a short position of Artisan Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and Artisan Partners.

Diversification Opportunities for Suburban Propane and Artisan Partners

0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between Suburban and Artisan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners 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 Suburban Propane 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 Suburban Propane Partners 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 Suburban Propane i.e., Suburban Propane and Artisan Partners go up and down completely randomly.

Pair Corralation between Suburban Propane and Artisan Partners

Considering the 90-day investment horizon Suburban Propane Partners is expected to under-perform the Artisan Partners. But the stock apears to be less risky and, when comparing its historical volatility, Suburban Propane Partners is 1.07 times less risky than Artisan Partners. The stock trades about 0.0 of its potential returns per unit of risk. The Artisan Partners Asset is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  3,843  in Artisan Partners Asset on September 12, 2024 and sell it today you would earn a total of  1,005  from holding Artisan Partners Asset or generate 26.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.2%
ValuesDaily Returns

Suburban Propane Partners  vs.  Artisan Partners Asset

 Performance 
       Timeline  
Suburban Propane Partners 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Suburban Propane Partners are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Suburban Propane may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Artisan Partners Asset 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Partners Asset are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Artisan Partners displayed solid returns over the last few months and may actually be approaching a breakup point.

Suburban Propane and Artisan Partners Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Suburban Propane and Artisan Partners

The main advantage of trading using opposite Suburban Propane and Artisan Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane 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.
The idea behind Suburban Propane Partners and Artisan Partners Asset pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments