Correlation Between Artisan Emerging and Bruce Fund

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

By analyzing existing cross correlation between Artisan Emerging Markets and Bruce Fund Bruce, you can compare the effects of market volatilities on Artisan Emerging and Bruce Fund 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 Emerging with a short position of Bruce Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and Bruce Fund.

Diversification Opportunities for Artisan Emerging and Bruce Fund

0.08

Correlation Coefficient

Artisan Emerging  Bruce Fund

Significant diversification

The 3 months correlation between Artisan and Bruce is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Bruce Fund Bruce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bruce Fund Bruce and Artisan Emerging 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 Emerging Markets are associated (or correlated) with Bruce Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bruce Fund Bruce has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Bruce Fund go up and down completely randomly.

Pair Corralation between Artisan Emerging and Bruce Fund

Assuming the 90 days horizon Artisan Emerging Markets is expected to generate 0.31 times more return on investment than Bruce Fund. However, Artisan Emerging Markets is 3.25 times less risky than Bruce Fund. It trades about 0.14 of its potential returns per unit of risk. Bruce Fund Bruce is currently generating about -0.02 per unit of risk. If you would invest  1,018  in Artisan Emerging Markets on December 2, 2024 and sell it today you would earn a total of  21.00  from holding Artisan Emerging Markets or generate 2.06% return on investment over 90 days.

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

Artisan Emerging Markets  vs.  Bruce Fund Bruce

Artisan Emerging Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Emerging Markets are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Artisan Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bruce Fund Bruce

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bruce Fund Bruce has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Bruce Fund 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 Emerging and Bruce Fund

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

The idea behind Artisan Emerging Markets and Bruce Fund Bruce 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.