Correlation Between Artisan International and Stocksplus Fund

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

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

Diversification Opportunities for Artisan International and Stocksplus Fund

0.69

Correlation Coefficient

Artisan International  Stocksplus Fund

Poor diversification

The 3 months correlation between Artisan and Stocksplus is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Artisan International Small and Stocksplus Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Fund Inst and Artisan International 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 International Small are associated (or correlated) with Stocksplus Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Fund Inst has no effect on the direction of Artisan International i.e., Artisan International and Stocksplus Fund go up and down completely randomly.

Pair Corralation between Artisan International and Stocksplus Fund

Assuming the 90 days horizon Artisan International Small is expected to generate 1.22 times more return on investment than Stocksplus Fund. However, Artisan International is 1.22 times more volatile than Stocksplus Fund Institutional. It trades about -0.09 of its potential returns per unit of risk. Stocksplus Fund Institutional is currently generating about -0.18 per unit of risk. If you would invest  1,797  in Artisan International Small on December 2, 2024 and sell it today you would lose (31.00) from holding Artisan International Small or give up 1.73% of portfolio value over 90 days.

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

Artisan International Small  vs.  Stocksplus Fund Institutional

Artisan International

Risk-Adjusted Performance

Very Weak

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

Stocksplus Fund Inst

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stocksplus Fund Institutional has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Artisan International and Stocksplus Fund

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

The idea behind Artisan International Small and Stocksplus Fund Institutional 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.