Correlation Between Artemis Strategic and Main Street

Can any of the company-specific risk be diversified away by investing in both Artemis Strategic and Main Street 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 Artemis Strategic and Main Street into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artemis Strategic Investment and Main Street Financial, you can compare the effects of market volatilities on Artemis Strategic and Main Street 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 Artemis Strategic with a short position of Main Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Strategic and Main Street.

Diversification Opportunities for Artemis Strategic and Main Street

0.85

Correlation Coefficient

Artemis Strategic  Main Street

Very poor diversification

The 3 months correlation between Artemis and Main is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Strategic Investment and Main Street Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main Street Financial and Artemis Strategic 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 Artemis Strategic Investment are associated (or correlated) with Main Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main Street Financial has no effect on the direction of Artemis Strategic i.e., Artemis Strategic and Main Street go up and down completely randomly.

Pair Corralation between Artemis Strategic and Main Street

If you would invest  1,322  in Main Street Financial on September 4, 2024 and sell it today you would earn a total of  128.00  from holding Main Street Financial or generate 9.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	1.59%
Values	Daily Returns

Artemis Strategic Investment  vs.  Main Street Financial

Artemis Strategic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artemis Strategic Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Artemis Strategic is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Main Street Financial

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Main Street Financial are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Main Street may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Artemis Strategic and Main Street

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

The idea behind Artemis Strategic Investment and Main Street Financial 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.