Correlation Between Artisan Global and Pear Tree
Can any of the company-specific risk be diversified away by investing in both Artisan Global and Pear Tree 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 Pear Tree 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 Pear Tree Polaris, you can compare the effects of market volatilities on Artisan Global and Pear Tree 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 Pear Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Pear Tree.
Diversification Opportunities for Artisan Global and Pear Tree
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Pear is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Value and Pear Tree Polaris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pear Tree Polaris 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 Pear Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pear Tree Polaris has no effect on the direction of Artisan Global i.e., Artisan Global and Pear Tree go up and down completely randomly.
Pair Corralation between Artisan Global and Pear Tree
Assuming the 90 days horizon Artisan Global Value is expected to generate 0.94 times more return on investment than Pear Tree. However, Artisan Global Value is 1.06 times less risky than Pear Tree. It trades about 0.22 of its potential returns per unit of risk. Pear Tree Polaris is currently generating about 0.15 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 Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Artisan Global Value vs. Pear Tree Polaris
Performance |
Timeline |
Artisan Global Value |
Pear Tree Polaris |
Artisan Global and Pear Tree Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Artisan Global and Pear Tree
The main advantage of trading using opposite Artisan Global and Pear Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Pear Tree 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 Pear Tree will offset losses from the drop in Pear Tree's long position.Artisan Global vs. Artisan Global Opportunities | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Global Equity | Artisan Global vs. Oakmark Global Select |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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