Correlation Between Oberweis International and Artisan Global

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

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

Diversification Opportunities for Oberweis International and Artisan Global

0.06

Correlation Coefficient

Oberweis International  Artisan Global

Significant diversification

The 3 months correlation between Oberweis and Artisan is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Oberweis International Opportu and Artisan Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Global Oppor and Oberweis International 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 Oberweis International Opportunities are associated (or correlated) with Artisan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Global Oppor has no effect on the direction of Oberweis International i.e., Oberweis International and Artisan Global go up and down completely randomly.

Pair Corralation between Oberweis International and Artisan Global

Assuming the 90 days horizon Oberweis International is expected to generate 11.82 times less return on investment than Artisan Global. In addition to that, Oberweis International is 1.0 times more volatile than Artisan Global Opportunities. It trades about 0.01 of its total potential returns per unit of risk. Artisan Global Opportunities is currently generating about 0.13 per unit of volatility. If you would invest  3,454  in Artisan Global Opportunities on September 4, 2024 and sell it today you would earn a total of  224.00  from holding Artisan Global Opportunities or generate 6.49% return on investment over 90 days.

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

Oberweis International Opportu  vs.  Artisan Global Opportunities

Oberweis International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Artisan Global Oppor

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Global Opportunities are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Artisan Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Oberweis International and Artisan Global

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

The idea behind Oberweis International Opportunities and Artisan Global Opportunities 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.