Correlation Between Artisan International and Artisan Global

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

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

Diversification Opportunities for Artisan International and Artisan Global

0.98

Correlation Coefficient

Artisan International  Artisan Global

Almost no diversification

The 3 months correlation between Artisan and ARTISAN is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Artisan International Value and Artisan Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Global Value and Artisan International 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 International Value are associated (or correlated) with Artisan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Global Value has no effect on the direction of Artisan International i.e., Artisan International and Artisan Global go up and down completely randomly.

Pair Corralation between Artisan International and Artisan Global

Assuming the 90 days horizon Artisan International is expected to generate 1.33 times less return on investment than Artisan Global. But when comparing it to its historical volatility, Artisan International Value is 1.2 times less risky than Artisan Global. It trades about 0.18 of its potential returns per unit of risk. Artisan Global Value is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  2,214  in Artisan Global Value on December 22, 2024 and sell it today you would earn a total of  215.00  from holding Artisan Global Value or generate 9.71% return on investment over 90 days.

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

Artisan International Value  vs.  Artisan Global Value

Artisan International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan International Value are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Artisan International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Artisan Global Value

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Global Value are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Artisan Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Artisan International and Artisan Global

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

The idea behind Artisan International Value and Artisan Global Value 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.