Correlation Between Artisan High and Simt Multi-asset

Can any of the company-specific risk be diversified away by investing in both Artisan High and Simt Multi-asset 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 Simt Multi-asset 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 Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Artisan High and Simt Multi-asset 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Simt Multi-asset.

Diversification Opportunities for Artisan High and Simt Multi-asset

0.12

Correlation Coefficient

Artisan High  Simt Multi-asset

Average diversification

The 3 months correlation between Artisan and Simt is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Artisan High i.e., Artisan High and Simt Multi-asset go up and down completely randomly.

Pair Corralation between Artisan High and Simt Multi-asset

Assuming the 90 days horizon Artisan High Income is expected to generate 0.18 times more return on investment than Simt Multi-asset. However, Artisan High Income is 5.64 times less risky than Simt Multi-asset. It trades about -0.29 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about -0.35 per unit of risk. If you would invest  921.00  in Artisan High Income on October 9, 2024 and sell it today you would lose (8.00) from holding Artisan High Income or give up 0.87% of portfolio value over 90 days.

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

Artisan High Income  vs.  Simt Multi Asset Accumulation

Artisan High Income

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan High Income are ranked lower than 5 (%) 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.

Simt Multi Asset

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Simt Multi Asset Accumulation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Simt Multi-asset 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 Simt Multi-asset

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

The idea behind Artisan High Income and Simt Multi Asset Accumulation 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.