Correlation Between Wasatch Ultra and Artisan International

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

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

Diversification Opportunities for Wasatch Ultra and Artisan International

-0.49

Correlation Coefficient

Wasatch Ultra  Artisan International

Very good diversification

The 3 months correlation between Wasatch and Artisan is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Ultra Growth and Artisan International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan International and Wasatch Ultra 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 Wasatch Ultra Growth are associated (or correlated) with Artisan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan International has no effect on the direction of Wasatch Ultra i.e., Wasatch Ultra and Artisan International go up and down completely randomly.

Pair Corralation between Wasatch Ultra and Artisan International

Assuming the 90 days horizon Wasatch Ultra Growth is expected to under-perform the Artisan International. In addition to that, Wasatch Ultra is 2.07 times more volatile than Artisan International Value. It trades about -0.17 of its total potential returns per unit of risk. Artisan International Value is currently generating about 0.19 per unit of volatility. If you would invest  4,684  in Artisan International Value on December 20, 2024 and sell it today you would earn a total of  357.00  from holding Artisan International Value or generate 7.62% return on investment over 90 days.

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

Wasatch Ultra Growth  vs.  Artisan International Value

Wasatch Ultra Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wasatch Ultra Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Artisan International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan International Value are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Artisan International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Wasatch Ultra and Artisan International

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

The idea behind Wasatch Ultra Growth and Artisan International Value 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.