Correlation Between Artisan Global and General Money

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

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

Diversification Opportunities for Artisan Global and General Money

0.84

Correlation Coefficient

Artisan Global  General Money

Very poor diversification

The 3 months correlation between Artisan and General is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Unconstrained and General Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Money Market and Artisan Global 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 Global Unconstrained are associated (or correlated) with General Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Money Market has no effect on the direction of Artisan Global i.e., Artisan Global and General Money go up and down completely randomly.

Pair Corralation between Artisan Global and General Money

Assuming the 90 days horizon Artisan Global Unconstrained is expected to generate 1.04 times more return on investment than General Money. However, Artisan Global is 1.04 times more volatile than General Money Market. It trades about 0.24 of its potential returns per unit of risk. General Money Market is currently generating about 0.13 per unit of risk. If you would invest  996.00  in Artisan Global Unconstrained on September 5, 2024 and sell it today you would earn a total of  20.00  from holding Artisan Global Unconstrained or generate 2.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Artisan Global Unconstrained  vs.  General Money Market

Artisan Global Uncon

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Global Unconstrained are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Artisan Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

General Money Market

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in General Money Market are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, General Money 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 Global and General Money

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

The idea behind Artisan Global Unconstrained and General Money Market 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.