Correlation Between Artisan High and Lind Capital

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

By analyzing existing cross correlation between Artisan High Income and Lind Capital Partners, you can compare the effects of market volatilities on Artisan High and Lind Capital 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 High with a short position of Lind Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Lind Capital.

Diversification Opportunities for Artisan High and Lind Capital

0.32

Correlation Coefficient

Artisan High  Lind Capital

Weak diversification

The 3 months correlation between Artisan and Lind is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and Lind Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lind Capital Partners and Artisan High 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 High Income are associated (or correlated) with Lind Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lind Capital Partners has no effect on the direction of Artisan High i.e., Artisan High and Lind Capital go up and down completely randomly.

Pair Corralation between Artisan High and Lind Capital

Assuming the 90 days horizon Artisan High is expected to generate 56.0 times less return on investment than Lind Capital. But when comparing it to its historical volatility, Artisan High Income is 1.99 times less risky than Lind Capital. It trades about 0.0 of its potential returns per unit of risk. Lind Capital Partners is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  887.00  in Lind Capital Partners on December 2, 2024 and sell it today you would earn a total of  1.00  from holding Lind Capital Partners or generate 0.11% return on investment over 90 days.

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

Artisan High Income  vs.  Lind Capital Partners

Artisan High Income

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan High Income are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Artisan High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lind Capital Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lind Capital Partners has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Lind Capital 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 High and Lind Capital

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

The idea behind Artisan High Income and Lind Capital Partners 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.