Correlation Between Eagle Mlp and Artisan Thematic

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

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

Diversification Opportunities for Eagle Mlp and Artisan Thematic

0.31

Correlation Coefficient

Eagle Mlp  Artisan Thematic

Weak diversification

The 3 months correlation between Eagle and Artisan is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Artisan Thematic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Thematic and Eagle Mlp 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 Eagle Mlp Strategy are associated (or correlated) with Artisan Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Thematic has no effect on the direction of Eagle Mlp i.e., Eagle Mlp and Artisan Thematic go up and down completely randomly.

Pair Corralation between Eagle Mlp and Artisan Thematic

Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 0.47 times more return on investment than Artisan Thematic. However, Eagle Mlp Strategy is 2.15 times less risky than Artisan Thematic. It trades about -0.27 of its potential returns per unit of risk. Artisan Thematic Fund is currently generating about -0.19 per unit of risk. If you would invest  1,131  in Eagle Mlp Strategy on September 29, 2024 and sell it today you would lose (81.00) from holding Eagle Mlp Strategy or give up 7.16% of portfolio value over 90 days.

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

Eagle Mlp Strategy  vs.  Artisan Thematic Fund

Eagle Mlp Strategy

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Mlp Strategy are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eagle Mlp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Artisan Thematic

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Eagle Mlp and Artisan Thematic

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

The idea behind Eagle Mlp Strategy and Artisan Thematic 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..