Correlation Between Artisan Global and Fidelity Sai

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

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

Diversification Opportunities for Artisan Global and Fidelity Sai

0.38

Correlation Coefficient

Artisan Global  Fidelity Sai

Weak diversification

The 3 months correlation between Artisan and Fidelity is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Opportunities and Fidelity Sai Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Alternative 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 Opportunities are associated (or correlated) with Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Alternative has no effect on the direction of Artisan Global i.e., Artisan Global and Fidelity Sai go up and down completely randomly.

Pair Corralation between Artisan Global and Fidelity Sai

Assuming the 90 days horizon Artisan Global Opportunities is expected to under-perform the Fidelity Sai. In addition to that, Artisan Global is 2.71 times more volatile than Fidelity Sai Alternative. It trades about -0.05 of its total potential returns per unit of risk. Fidelity Sai Alternative is currently generating about -0.01 per unit of volatility. If you would invest  1,022  in Fidelity Sai Alternative on December 21, 2024 and sell it today you would lose (4.00) from holding Fidelity Sai Alternative or give up 0.39% of portfolio value over 90 days.

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

Artisan Global Opportunities  vs.  Fidelity Sai Alternative

Artisan Global Oppor

Risk-Adjusted Performance

Very Weak

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

Fidelity Sai Alternative

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Sai Alternative has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Fidelity Sai 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 Fidelity Sai

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

The idea behind Artisan Global Opportunities and Fidelity Sai Alternative 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.