Correlation Between Artisan Partners and SUPER HI

Can any of the company-specific risk be diversified away by investing in both Artisan Partners and SUPER HI 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 Artisan Partners and SUPER HI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artisan Partners Asset and SUPER HI INTERNATIONAL, you can compare the effects of market volatilities on Artisan Partners and SUPER HI 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 Artisan Partners with a short position of SUPER HI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and SUPER HI.

Diversification Opportunities for Artisan Partners and SUPER HI

-0.24

Correlation Coefficient

Artisan Partners  SUPER HI

Very good diversification

The 3 months correlation between Artisan and SUPER is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and SUPER HI INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER HI INTERNATIONAL and Artisan Partners 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 Artisan Partners Asset are associated (or correlated) with SUPER HI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER HI INTERNATIONAL has no effect on the direction of Artisan Partners i.e., Artisan Partners and SUPER HI go up and down completely randomly.

Pair Corralation between Artisan Partners and SUPER HI

Given the investment horizon of 90 days Artisan Partners Asset is expected to generate 0.49 times more return on investment than SUPER HI. However, Artisan Partners Asset is 2.02 times less risky than SUPER HI. It trades about -0.03 of its potential returns per unit of risk. SUPER HI INTERNATIONAL is currently generating about -0.02 per unit of risk. If you would invest  4,185  in Artisan Partners Asset on December 19, 2024 and sell it today you would lose (151.00) from holding Artisan Partners Asset or give up 3.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Artisan Partners Asset  vs.  SUPER HI INTERNATIONAL

Artisan Partners Asset

Risk-Adjusted Performance

Very Weak

Over the last 90 days Artisan Partners Asset has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Artisan Partners is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

SUPER HI INTERNATIONAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days SUPER HI INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, SUPER HI is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Artisan Partners and SUPER HI

The main advantage of trading using opposite Artisan Partners and SUPER HI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, SUPER HI 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 SUPER HI will offset losses from the drop in SUPER HI's long position.

The idea behind Artisan Partners Asset and SUPER HI INTERNATIONAL 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.