Correlation Between Artisan Emerging and Dunham Appreciation

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

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

Diversification Opportunities for Artisan Emerging and Dunham Appreciation

0.8

Correlation Coefficient

Artisan Emerging  Dunham Appreciation

Very poor diversification

The 3 months correlation between Artisan and Dunham is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Dunham Appreciation Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Appreciation and Artisan Emerging 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 Emerging Markets are associated (or correlated) with Dunham Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Appreciation has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Dunham Appreciation go up and down completely randomly.

Pair Corralation between Artisan Emerging and Dunham Appreciation

Assuming the 90 days horizon Artisan Emerging Markets is expected to generate 3.48 times more return on investment than Dunham Appreciation. However, Artisan Emerging is 3.48 times more volatile than Dunham Appreciation Income. It trades about 0.14 of its potential returns per unit of risk. Dunham Appreciation Income is currently generating about 0.15 per unit of risk. If you would invest  1,011  in Artisan Emerging Markets on September 2, 2024 and sell it today you would earn a total of  19.00  from holding Artisan Emerging Markets or generate 1.88% return on investment over 90 days.

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

Artisan Emerging Markets  vs.  Dunham Appreciation Income

Artisan Emerging Markets

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Emerging Markets are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Artisan Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dunham Appreciation

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dunham Appreciation Income are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Dunham Appreciation 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 Emerging and Dunham Appreciation

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

The idea behind Artisan Emerging Markets and Dunham Appreciation Income 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.