Correlation Between SSMTF and Artisan Consumer

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

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

Diversification Opportunities for SSMTF and Artisan Consumer

0.0

Correlation Coefficient

SSMTF  Artisan Consumer

Pay attention - limited upside

The 3 months correlation between SSMTF and Artisan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSMTF and Artisan Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Consumer Goods and SSMTF 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 SSMTF are associated (or correlated) with Artisan Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Consumer Goods has no effect on the direction of SSMTF i.e., SSMTF and Artisan Consumer go up and down completely randomly.

Pair Corralation between SSMTF and Artisan Consumer

If you would invest  0.15  in SSMTF on October 21, 2024 and sell it today you would earn a total of  0.00  from holding SSMTF or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

SSMTF  vs.  Artisan Consumer Goods

SSMTF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SSMTF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SSMTF is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Artisan Consumer Goods

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Consumer Goods are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Artisan Consumer may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with SSMTF and Artisan Consumer

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

The idea behind SSMTF and Artisan Consumer Goods 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.