Correlation Between Frank Value and Artisan Global

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

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

Diversification Opportunities for Frank Value and Artisan Global

0.61

Correlation Coefficient

Frank Value  Artisan Global

Poor diversification

The 3 months correlation between Frank and Artisan is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Frank Value Fund and Artisan Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Global Oppor and Frank Value 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 Frank Value Fund are associated (or correlated) with Artisan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Global Oppor has no effect on the direction of Frank Value i.e., Frank Value and Artisan Global go up and down completely randomly.

Pair Corralation between Frank Value and Artisan Global

Assuming the 90 days horizon Frank Value Fund is expected to generate 0.88 times more return on investment than Artisan Global. However, Frank Value Fund is 1.13 times less risky than Artisan Global. It trades about -0.01 of its potential returns per unit of risk. Artisan Global Opportunities is currently generating about -0.04 per unit of risk. If you would invest  1,635  in Frank Value Fund on December 20, 2024 and sell it today you would lose (10.00) from holding Frank Value Fund or give up 0.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

Frank Value Fund  vs.  Artisan Global Opportunities

Frank Value Fund

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with Frank Value and Artisan Global

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

The idea behind Frank Value Fund and Artisan Global Opportunities 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.