Correlation Between Artisan Global and Aston Montag

Can any of the company-specific risk be diversified away by investing in both Artisan Global and Aston Montag 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 Aston Montag 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 Aston Montag Caldwell, you can compare the effects of market volatilities on Artisan Global and Aston Montag 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 Aston Montag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Aston Montag.

Diversification Opportunities for Artisan Global and Aston Montag

-0.37

Correlation Coefficient

Artisan Global  Aston Montag

Very good diversification

The 3 months correlation between Artisan and Aston is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Value and Aston Montag Caldwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Montag Caldwell 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 Aston Montag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Montag Caldwell has no effect on the direction of Artisan Global i.e., Artisan Global and Aston Montag go up and down completely randomly.

Pair Corralation between Artisan Global and Aston Montag

Assuming the 90 days horizon Artisan Global Value is expected to generate 0.66 times more return on investment than Aston Montag. However, Artisan Global Value is 1.53 times less risky than Aston Montag. It trades about 0.22 of its potential returns per unit of risk. Aston Montag Caldwell is currently generating about -0.09 per unit of risk. If you would invest  2,203  in Artisan Global Value on December 29, 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.  Aston Montag Caldwell

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.

Aston Montag Caldwell

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aston Montag Caldwell has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators 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 Global and Aston Montag

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

The idea behind Artisan Global Value and Aston Montag Caldwell 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.