Correlation Between Artisan Select and Bny Mellon

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

Diversification Opportunities for Artisan Select and Bny Mellon

0.52

Correlation Coefficient

Artisan Select  Bny Mellon

Very weak diversification

The 3 months correlation between Artisan and Bny is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Bny Mellon New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon New 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon New has no effect on the direction of Artisan Select i.e., Artisan Select and Bny Mellon go up and down completely randomly.

Pair Corralation between Artisan Select and Bny Mellon

Assuming the 90 days horizon Artisan Select Equity is expected to under-perform the Bny Mellon. In addition to that, Artisan Select is 3.7 times more volatile than Bny Mellon New. It trades about -0.31 of its total potential returns per unit of risk. Bny Mellon New is currently generating about -0.33 per unit of volatility. If you would invest  1,058  in Bny Mellon New on October 7, 2024 and sell it today you would lose (15.00) from holding Bny Mellon New or give up 1.42% of portfolio value over 90 days.

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

Artisan Select Equity  vs.  Bny Mellon New

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.

Bny Mellon New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bny Mellon New has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Bny Mellon 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 Bny Mellon

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

The idea behind Artisan Select Equity and Bny Mellon New 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.