Correlation Between Eagle Small and Artisan Small
Can any of the company-specific risk be diversified away by investing in both Eagle Small and Artisan Small 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 Small and Artisan Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Small Cap and Artisan Small Cap, you can compare the effects of market volatilities on Eagle Small and Artisan Small 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 Small with a short position of Artisan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Artisan Small.
Diversification Opportunities for Eagle Small and Artisan Small
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Artisan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and Artisan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Small Cap and Eagle Small 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 Small Cap are associated (or correlated) with Artisan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Small Cap has no effect on the direction of Eagle Small i.e., Eagle Small and Artisan Small go up and down completely randomly.
Pair Corralation between Eagle Small and Artisan Small
Assuming the 90 days horizon Eagle Small Cap is expected to generate 0.73 times more return on investment than Artisan Small. However, Eagle Small Cap is 1.38 times less risky than Artisan Small. It trades about -0.25 of its potential returns per unit of risk. Artisan Small Cap is currently generating about -0.27 per unit of risk. If you would invest 2,717 in Eagle Small Cap on September 26, 2024 and sell it today you would lose (168.00) from holding Eagle Small Cap or give up 6.18% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Eagle Small Cap vs. Artisan Small Cap
Performance |
Timeline |
Eagle Small Cap |
Artisan Small Cap |
Eagle Small and Artisan Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Small and Artisan Small
The main advantage of trading using opposite Eagle Small and Artisan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, Artisan Small 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 Small will offset losses from the drop in Artisan Small's long position.Eagle Small vs. Chartwell Short Duration | Eagle Small vs. Carillon Chartwell Short | Eagle Small vs. Chartwell Short Duration | Eagle Small vs. Carillon Chartwell Short |
Artisan Small vs. Artisan Global Opportunities | Artisan Small vs. Artisan Mid Cap | Artisan Small vs. Wasatch Ultra Growth | Artisan Small vs. Artisan International Value |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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