Correlation Between Artisan Small and Ing Series

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

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

Diversification Opportunities for Artisan Small and Ing Series

0.92

Correlation Coefficient

Artisan Small  Ing Series

Almost no diversification

The 3 months correlation between Artisan and Ing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Ing Series Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Series Fund and Artisan Small 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 Small Cap are associated (or correlated) with Ing Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Series Fund has no effect on the direction of Artisan Small i.e., Artisan Small and Ing Series go up and down completely randomly.

Pair Corralation between Artisan Small and Ing Series

Assuming the 90 days horizon Artisan Small Cap is expected to generate 1.24 times more return on investment than Ing Series. However, Artisan Small is 1.24 times more volatile than Ing Series Fund. It trades about -0.01 of its potential returns per unit of risk. Ing Series Fund is currently generating about -0.02 per unit of risk. If you would invest  3,640  in Artisan Small Cap on September 24, 2024 and sell it today you would lose (64.00) from holding Artisan Small Cap or give up 1.76% of portfolio value over 90 days.

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

Artisan Small Cap  vs.  Ing Series Fund

Artisan Small Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artisan Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Artisan Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ing Series Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ing Series Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Ing Series 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 Small and Ing Series

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

The idea behind Artisan Small Cap and Ing Series 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.