Correlation Between Valic Company and Artisan Select
Can any of the company-specific risk be diversified away by investing in both Valic Company and Artisan Select 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 Valic Company and Artisan Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Artisan Select Equity, you can compare the effects of market volatilities on Valic Company and Artisan Select 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 Valic Company with a short position of Artisan Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Artisan Select.
Diversification Opportunities for Valic Company and Artisan Select
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valic and Artisan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Artisan Select Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Select Equity and Valic Company 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 Valic Company I are associated (or correlated) with Artisan Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Select Equity has no effect on the direction of Valic Company i.e., Valic Company and Artisan Select go up and down completely randomly.
Pair Corralation between Valic Company and Artisan Select
Assuming the 90 days horizon Valic Company is expected to generate 2.03 times less return on investment than Artisan Select. But when comparing it to its historical volatility, Valic Company I is 1.75 times less risky than Artisan Select. It trades about 0.08 of its potential returns per unit of risk. Artisan Select Equity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,187 in Artisan Select Equity on November 7, 2024 and sell it today you would earn a total of 455.00 from holding Artisan Select Equity or generate 38.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Artisan Select Equity
Performance |
| Timeline |
| Valic Company I |
| Artisan Select Equity |
Valic Company and Artisan Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Artisan Select
The main advantage of trading using opposite Valic Company and Artisan Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Artisan Select 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 Select will offset losses from the drop in Artisan Select's long position.| Valic Company vs. Federated Emerging Market | Valic Company vs. Siit Emerging Markets | Valic Company vs. Kinetics Market Opportunities | Valic Company vs. Angel Oak Multi Strategy |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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