Correlation Between Artisan Select and Allianzgi Global

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

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

Diversification Opportunities for Artisan Select and Allianzgi Global

0.57

Correlation Coefficient

Artisan Select  Allianzgi Global

Very weak diversification

The 3 months correlation between Artisan and Allianzgi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Allianzgi Global Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global Small and Artisan Select 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 Select Equity are associated (or correlated) with Allianzgi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Global Small has no effect on the direction of Artisan Select i.e., Artisan Select and Allianzgi Global go up and down completely randomly.

Pair Corralation between Artisan Select and Allianzgi Global

Assuming the 90 days horizon Artisan Select Equity is expected to generate 0.31 times more return on investment than Allianzgi Global. However, Artisan Select Equity is 3.24 times less risky than Allianzgi Global. It trades about -0.16 of its potential returns per unit of risk. Allianzgi Global Small Cap is currently generating about -0.28 per unit of risk. If you would invest  1,601  in Artisan Select Equity on October 11, 2024 and sell it today you would lose (44.00) from holding Artisan Select Equity or give up 2.75% of portfolio value over 90 days.

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

Artisan Select Equity  vs.  Allianzgi Global Small Cap

Artisan Select Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artisan Select Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Artisan Select is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi Global Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi Global Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Artisan Select and Allianzgi Global

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

The idea behind Artisan Select Equity and Allianzgi Global Small Cap 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.