Correlation Between Artisan Select and Dunham Corporate/govern

Can any of the company-specific risk be diversified away by investing in both Artisan Select and Dunham Corporate/govern 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 Dunham Corporate/govern 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 Dunham Porategovernment Bond, you can compare the effects of market volatilities on Artisan Select and Dunham Corporate/govern 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 Dunham Corporate/govern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Dunham Corporate/govern.

Diversification Opportunities for Artisan Select and Dunham Corporate/govern

0.36

Correlation Coefficient

Artisan Select  Dunham Corporate/govern

Weak diversification

The 3 months correlation between Artisan and Dunham is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Dunham Porategovernment Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Porategovernment 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 Dunham Corporate/govern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Porategovernment has no effect on the direction of Artisan Select i.e., Artisan Select and Dunham Corporate/govern go up and down completely randomly.

Pair Corralation between Artisan Select and Dunham Corporate/govern

Assuming the 90 days horizon Artisan Select Equity is expected to under-perform the Dunham Corporate/govern. In addition to that, Artisan Select is 3.48 times more volatile than Dunham Porategovernment Bond. It trades about -0.29 of its total potential returns per unit of risk. Dunham Porategovernment Bond is currently generating about -0.46 per unit of volatility. If you would invest  1,266  in Dunham Porategovernment Bond on October 8, 2024 and sell it today you would lose (26.00) from holding Dunham Porategovernment Bond or give up 2.05% of portfolio value over 90 days.

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

Artisan Select Equity  vs.  Dunham Porategovernment Bond

Artisan Select Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artisan Select Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Artisan Select is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dunham Porategovernment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dunham Porategovernment Bond has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Dunham Corporate/govern 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 Select and Dunham Corporate/govern

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

The idea behind Artisan Select Equity and Dunham Porategovernment Bond 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.

Check out your portfolio center.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.