Correlation Between Bruce Fund and Artisan High

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

By analyzing existing cross correlation between Bruce Fund Bruce and Artisan High Income, you can compare the effects of market volatilities on Bruce Fund and Artisan High 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 Bruce Fund with a short position of Artisan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Artisan High.

Diversification Opportunities for Bruce Fund and Artisan High

0.68

Correlation Coefficient

Bruce Fund  Artisan High

Poor diversification

The 3 months correlation between Bruce and Artisan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Artisan High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan High Income and Bruce Fund 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 Bruce Fund Bruce are associated (or correlated) with Artisan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan High Income has no effect on the direction of Bruce Fund i.e., Bruce Fund and Artisan High go up and down completely randomly.

Pair Corralation between Bruce Fund and Artisan High

Assuming the 90 days horizon Bruce Fund Bruce is expected to generate 3.14 times more return on investment than Artisan High. However, Bruce Fund is 3.14 times more volatile than Artisan High Income. It trades about 0.08 of its potential returns per unit of risk. Artisan High Income is currently generating about 0.13 per unit of risk. If you would invest  49,854  in Bruce Fund Bruce on December 29, 2024 and sell it today you would earn a total of  1,492  from holding Bruce Fund Bruce or generate 2.99% return on investment over 90 days.

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

Bruce Fund Bruce  vs.  Artisan High Income

Bruce Fund Bruce

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bruce Fund Bruce are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Bruce Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Artisan High Income

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan High Income are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Artisan High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bruce Fund and Artisan High

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

The idea behind Bruce Fund Bruce and Artisan High Income 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..