Correlation Between Sound Shore and Artisan High
Can any of the company-specific risk be diversified away by investing in both Sound Shore and Artisan High 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 Sound Shore and Artisan High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sound Shore Fund and Artisan High Income, you can compare the effects of market volatilities on Sound Shore and Artisan High 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 Sound Shore with a short position of Artisan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sound Shore and Artisan High.
Diversification Opportunities for Sound Shore and Artisan High
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sound and ARTISAN is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sound Shore Fund and Artisan High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan High Income and Sound Shore 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 Sound Shore Fund are associated (or correlated) with Artisan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan High Income has no effect on the direction of Sound Shore i.e., Sound Shore and Artisan High go up and down completely randomly.
Pair Corralation between Sound Shore and Artisan High
Assuming the 90 days horizon Sound Shore Fund is expected to generate 2.92 times more return on investment than Artisan High. However, Sound Shore is 2.92 times more volatile than Artisan High Income. It trades about 0.07 of its potential returns per unit of risk. Artisan High Income is currently generating about 0.14 per unit of risk. If you would invest 3,669 in Sound Shore Fund on August 29, 2024 and sell it today you would earn a total of 1,343 from holding Sound Shore Fund or generate 36.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sound Shore Fund vs. Artisan High Income
Performance |
| Timeline |
| Sound Shore Fund |
| Artisan High Income |
Sound Shore and Artisan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sound Shore and Artisan High
The main advantage of trading using opposite Sound Shore and Artisan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sound Shore position performs unexpectedly, Artisan High 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 High will offset losses from the drop in Artisan High's long position.| Sound Shore vs. Bbh Intermediate Municipal | Sound Shore vs. Calamos Dynamic Convertible | Sound Shore vs. Vanguard High Yield Tax Exempt | Sound Shore vs. Blrc Sgy Mnp |
| Artisan High vs. Live Oak Health | Artisan High vs. Blackrock Health Sciences | Artisan High vs. Fidelity Advisor Health | Artisan High vs. Prudential Health Sciences |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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