Correlation Between Artisan High and Barrow Hanley

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

By analyzing existing cross correlation between Artisan High Income and Barrow Hanley Floating, you can compare the effects of market volatilities on Artisan High and Barrow Hanley 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 High with a short position of Barrow Hanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Barrow Hanley.

Diversification Opportunities for Artisan High and Barrow Hanley

0.79

Correlation Coefficient

Artisan High  Barrow Hanley

Poor diversification

The 3 months correlation between Artisan and Barrow is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and Barrow Hanley Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrow Hanley Floating and Artisan High 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 High Income are associated (or correlated) with Barrow Hanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrow Hanley Floating has no effect on the direction of Artisan High i.e., Artisan High and Barrow Hanley go up and down completely randomly.

Pair Corralation between Artisan High and Barrow Hanley

Assuming the 90 days horizon Artisan High is expected to generate 26.0 times less return on investment than Barrow Hanley. In addition to that, Artisan High is 2.59 times more volatile than Barrow Hanley Floating. It trades about 0.0 of its total potential returns per unit of risk. Barrow Hanley Floating is currently generating about 0.07 per unit of volatility. If you would invest  975.00  in Barrow Hanley Floating on September 24, 2024 and sell it today you would earn a total of  1.00  from holding Barrow Hanley Floating or generate 0.1% return on investment over 90 days.

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

Artisan High Income  vs.  Barrow Hanley Floating

Artisan High Income

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan High Income are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Artisan High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Barrow Hanley Floating

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Barrow Hanley Floating are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Barrow Hanley 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 High and Barrow Hanley

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

The idea behind Artisan High Income and Barrow Hanley Floating 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.