Correlation Between Artisan Select and Cibc Atlas

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

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

Diversification Opportunities for Artisan Select and Cibc Atlas

-0.1

Correlation Coefficient

Artisan Select  Cibc Atlas

Good diversification

The 3 months correlation between Artisan and Cibc is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Cibc Atlas All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibc Atlas All and Artisan Select 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 Select Equity are associated (or correlated) with Cibc Atlas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibc Atlas All has no effect on the direction of Artisan Select i.e., Artisan Select and Cibc Atlas go up and down completely randomly.

Pair Corralation between Artisan Select and Cibc Atlas

Assuming the 90 days horizon Artisan Select Equity is expected to generate 0.59 times more return on investment than Cibc Atlas. However, Artisan Select Equity is 1.69 times less risky than Cibc Atlas. It trades about 0.16 of its potential returns per unit of risk. Cibc Atlas All is currently generating about -0.08 per unit of risk. If you would invest  1,538  in Artisan Select Equity on December 28, 2024 and sell it today you would earn a total of  121.00  from holding Artisan Select Equity or generate 7.87% return on investment over 90 days.

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

Artisan Select Equity  vs.  Cibc Atlas All

Artisan Select Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Select Equity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Artisan Select may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cibc Atlas All

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cibc Atlas All has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Artisan Select and Cibc Atlas

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

The idea behind Artisan Select Equity and Cibc Atlas All 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..