Correlation Between Artisan Select and Fisher Investments

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

Diversification Opportunities for Artisan Select and Fisher Investments

0.49

Correlation Coefficient

Artisan Select  Fisher Investments

Very weak diversification

The 3 months correlation between Artisan and Fisher is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Fisher Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Fixed Income 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Fixed Income has no effect on the direction of Artisan Select i.e., Artisan Select and Fisher Investments go up and down completely randomly.

Pair Corralation between Artisan Select and Fisher Investments

Assuming the 90 days horizon Artisan Select Equity is expected to generate 2.64 times more return on investment than Fisher Investments. However, Artisan Select is 2.64 times more volatile than Fisher Fixed Income. It trades about 0.13 of its potential returns per unit of risk. Fisher Fixed Income is currently generating about 0.1 per unit of risk. If you would invest  1,538  in Artisan Select Equity on December 30, 2024 and sell it today you would earn a total of  111.00  from holding Artisan Select Equity or generate 7.22% return on investment over 90 days.

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

Artisan Select Equity  vs.  Fisher Fixed Income

Artisan Select Equity

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Select Equity are ranked lower than 10 (%) 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.

Fisher Fixed Income

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fisher Fixed Income are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Fisher Investments 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 Fisher Investments

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

The idea behind Artisan Select Equity and Fisher Fixed Income 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.