Correlation Between Nasdaq-100 Profund and Artisan Select

Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Profund and Artisan Select 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 Nasdaq-100 Profund and Artisan Select into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nasdaq 100 Profund Nasdaq 100 and Artisan Select Equity, you can compare the effects of market volatilities on Nasdaq-100 Profund and Artisan Select 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 Nasdaq-100 Profund with a short position of Artisan Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Profund and Artisan Select.

Diversification Opportunities for Nasdaq-100 Profund and Artisan Select

0.33

Correlation Coefficient

Nasdaq-100 Profund  Artisan Select

Weak diversification

The 3 months correlation between Nasdaq-100 and Artisan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Profund Nasdaq 100 and Artisan Select Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Select Equity and Nasdaq-100 Profund 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 Nasdaq 100 Profund Nasdaq 100 are associated (or correlated) with Artisan Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Select Equity has no effect on the direction of Nasdaq-100 Profund i.e., Nasdaq-100 Profund and Artisan Select go up and down completely randomly.

Pair Corralation between Nasdaq-100 Profund and Artisan Select

Assuming the 90 days horizon Nasdaq 100 Profund Nasdaq 100 is expected to generate 1.47 times more return on investment than Artisan Select. However, Nasdaq-100 Profund is 1.47 times more volatile than Artisan Select Equity. It trades about 0.1 of its potential returns per unit of risk. Artisan Select Equity is currently generating about 0.08 per unit of risk. If you would invest  2,157  in Nasdaq 100 Profund Nasdaq 100 on October 25, 2024 and sell it today you would earn a total of  1,421  from holding Nasdaq 100 Profund Nasdaq 100 or generate 65.88% return on investment over 90 days.

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

Nasdaq 100 Profund Nasdaq 100  vs.  Artisan Select Equity

Nasdaq 100 Profund

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq 100 Profund Nasdaq 100 are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Nasdaq-100 Profund may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Artisan Select Equity

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Select Equity are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Artisan Select is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nasdaq-100 Profund and Artisan Select

The main advantage of trading using opposite Nasdaq-100 Profund and Artisan Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Profund position performs unexpectedly, Artisan Select 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 Select will offset losses from the drop in Artisan Select's long position.

The idea behind Nasdaq 100 Profund Nasdaq 100 and Artisan Select Equity 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.