Correlation Between Artisan Select and Deutsche Croci

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

Diversification Opportunities for Artisan Select and Deutsche Croci

0.92

Correlation Coefficient

Artisan Select  Deutsche Croci

Almost no diversification

The 3 months correlation between Artisan and Deutsche is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Deutsche Croci Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Croci Equity 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 Deutsche Croci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Croci Equity has no effect on the direction of Artisan Select i.e., Artisan Select and Deutsche Croci go up and down completely randomly.

Pair Corralation between Artisan Select and Deutsche Croci

Assuming the 90 days horizon Artisan Select Equity is expected to generate 1.07 times more return on investment than Deutsche Croci. However, Artisan Select is 1.07 times more volatile than Deutsche Croci Equity. It trades about 0.11 of its potential returns per unit of risk. Deutsche Croci Equity is currently generating about 0.09 per unit of risk. If you would invest  1,531  in Artisan Select Equity on September 13, 2024 and sell it today you would earn a total of  72.00  from holding Artisan Select Equity or generate 4.7% return on investment over 90 days.

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

Artisan Select Equity  vs.  Deutsche Croci Equity

Artisan Select Equity

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Select Equity are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. 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.

Deutsche Croci Equity

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Croci Equity are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Deutsche Croci 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 Deutsche Croci

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

The idea behind Artisan Select Equity and Deutsche Croci Equity 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.