Correlation Between Artisan Partners and 456837AV5

Can any of the company-specific risk be diversified away by investing in both Artisan Partners and 456837AV5 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 456837AV5 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 ING GROEP NV, you can compare the effects of market volatilities on Artisan Partners and 456837AV5 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 456837AV5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and 456837AV5.

Diversification Opportunities for Artisan Partners and 456837AV5

-0.39

Correlation Coefficient

Artisan Partners  456837AV5

Very good diversification

The 3 months correlation between Artisan and 456837AV5 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and ING GROEP NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING GROEP NV 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 456837AV5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING GROEP NV has no effect on the direction of Artisan Partners i.e., Artisan Partners and 456837AV5 go up and down completely randomly.

Pair Corralation between Artisan Partners and 456837AV5

Given the investment horizon of 90 days Artisan Partners Asset is expected to under-perform the 456837AV5. In addition to that, Artisan Partners is 8.08 times more volatile than ING GROEP NV. It trades about -0.03 of its total potential returns per unit of risk. ING GROEP NV is currently generating about 0.07 per unit of volatility. If you would invest  9,613  in ING GROEP NV on December 25, 2024 and sell it today you would earn a total of  67.00  from holding ING GROEP NV or generate 0.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	77.97%
Values	Daily Returns

Artisan Partners Asset  vs.  ING GROEP NV

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.

ING GROEP NV

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ING GROEP NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 456837AV5 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Artisan Partners and 456837AV5

The main advantage of trading using opposite Artisan Partners and 456837AV5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, 456837AV5 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 456837AV5 will offset losses from the drop in 456837AV5's long position.

The idea behind Artisan Partners Asset and ING GROEP NV 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.