Correlation Between Artisan Global and Artisan Value

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

By analyzing existing cross correlation between Artisan Global Equity and Artisan Value Fund, you can compare the effects of market volatilities on Artisan Global and Artisan Value 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 Artisan Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Artisan Value.

Diversification Opportunities for Artisan Global and Artisan Value

0.69

Correlation Coefficient

Artisan Global  Artisan Value

Poor diversification

The 3 months correlation between Artisan and Artisan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Equity and Artisan Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Value 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 Equity are associated (or correlated) with Artisan Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Value has no effect on the direction of Artisan Global i.e., Artisan Global and Artisan Value go up and down completely randomly.

Pair Corralation between Artisan Global and Artisan Value

Assuming the 90 days horizon Artisan Global Equity is expected to under-perform the Artisan Value. In addition to that, Artisan Global is 1.48 times more volatile than Artisan Value Fund. It trades about -0.22 of its total potential returns per unit of risk. Artisan Value Fund is currently generating about -0.23 per unit of volatility. If you would invest  1,605  in Artisan Value Fund on September 12, 2024 and sell it today you would lose (122.00) from holding Artisan Value Fund or give up 7.6% of portfolio value over 90 days.

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

Artisan Global Equity  vs.  Artisan Value Fund

Artisan Global Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artisan Global Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Artisan Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artisan Value Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Artisan Value 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 Artisan Value

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

The idea behind Artisan Global Equity and Artisan Value Fund 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.