Correlation Between Fs Managed and Artisan Value

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

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

Diversification Opportunities for Fs Managed and Artisan Value

0.0

Correlation Coefficient

Fs Managed  Artisan Value

Pay attention - limited upside

The 3 months correlation between FMFFX and ARTISAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Artisan Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Value and Fs Managed 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 Fs Managed Futures 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 Fs Managed i.e., Fs Managed and Artisan Value go up and down completely randomly.

Pair Corralation between Fs Managed and Artisan Value

If you would invest  1,425  in Artisan Value Fund on December 29, 2024 and sell it today you would earn a total of  25.00  from holding Artisan Value Fund or generate 1.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fs Managed Futures  vs.  Artisan Value Fund

Fs Managed Futures

Risk-Adjusted Performance

Very Weak

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

Artisan Value

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Value Fund are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. 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 Fs Managed and Artisan Value

The main advantage of trading using opposite Fs Managed and Artisan Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed 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 Fs Managed Futures 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.