Correlation Between Artisan Select and Short Intermediate

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

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

Diversification Opportunities for Artisan Select and Short Intermediate

0.0

Correlation Coefficient

Artisan Select  Short Intermediate

Pay attention - limited upside

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

Pair Corralation between Artisan Select and Short Intermediate

Assuming the 90 days horizon Artisan Select Equity is expected to under-perform the Short Intermediate. In addition to that, Artisan Select is 6.02 times more volatile than Short Intermediate Bond Fund. It trades about -0.08 of its total potential returns per unit of risk. Short Intermediate Bond Fund is currently generating about 0.16 per unit of volatility. If you would invest  906.00  in Short Intermediate Bond Fund on September 12, 2024 and sell it today you would earn a total of  3.00  from holding Short Intermediate Bond Fund or generate 0.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Artisan Select Equity  vs.  Short Intermediate Bond Fund

Artisan Select Equity

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Select Equity are ranked lower than 9 (%) 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.

Short Intermediate Bond

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Short Intermediate Bond Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Short Intermediate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Artisan Select and Short Intermediate

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

The idea behind Artisan Select Equity and Short Intermediate Bond Fund 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.