Correlation Between Artisan Global and Amg River

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

By analyzing existing cross correlation between Artisan Global Value and Amg River Road, you can compare the effects of market volatilities on Artisan Global and Amg River 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 Global with a short position of Amg River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Amg River.

Diversification Opportunities for Artisan Global and Amg River

-0.31

Correlation Coefficient

Artisan Global  Amg River

Very good diversification

The 3 months correlation between Artisan and AMG is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Value and Amg River Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg River Road and Artisan Global 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 Global Value are associated (or correlated) with Amg River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg River Road has no effect on the direction of Artisan Global i.e., Artisan Global and Amg River go up and down completely randomly.

Pair Corralation between Artisan Global and Amg River

Assuming the 90 days horizon Artisan Global Value is expected to generate 0.9 times more return on investment than Amg River. However, Artisan Global Value is 1.11 times less risky than Amg River. It trades about 0.22 of its potential returns per unit of risk. Amg River Road is currently generating about -0.03 per unit of risk. If you would invest  2,203  in Artisan Global Value on December 28, 2024 and sell it today you would earn a total of  230.00  from holding Artisan Global Value or generate 10.44% return on investment over 90 days.

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

Artisan Global Value  vs.  Amg River Road

Artisan Global Value

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Global Value are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Artisan Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Amg River Road

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amg River Road has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Amg River 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 Global and Amg River

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

The idea behind Artisan Global Value and Amg River Road 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.