Correlation Between 361 Managed and Artisan High

Can any of the company-specific risk be diversified away by investing in both 361 Managed and Artisan High 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 361 Managed and Artisan High into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 361 Managed Futures and Artisan High Income, you can compare the effects of market volatilities on 361 Managed and Artisan High 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 361 Managed with a short position of Artisan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Managed and Artisan High.

Diversification Opportunities for 361 Managed and Artisan High

0.0

Correlation Coefficient

361 Managed  Artisan High

Pay attention - limited upside

The 3 months correlation between 361 and Artisan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 361 Managed Futures and Artisan High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan High Income and 361 Managed 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 361 Managed Futures are associated (or correlated) with Artisan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan High Income has no effect on the direction of 361 Managed i.e., 361 Managed and Artisan High go up and down completely randomly.

Pair Corralation between 361 Managed and Artisan High

If you would invest  784.00  in Artisan High Income on February 4, 2024 and sell it today you would earn a total of  110.00  from holding Artisan High Income or generate 14.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

361 Managed Futures  vs.  Artisan High Income

361 Managed Futures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 361 Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, 361 Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Artisan High Income

Risk-Adjusted Performance

9 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan High Income are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Artisan High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with 361 Managed and Artisan High

The main advantage of trading using opposite 361 Managed and Artisan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Managed position performs unexpectedly, Artisan High 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 High will offset losses from the drop in Artisan High's long position.

The idea behind 361 Managed Futures and Artisan High 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.

Check out your portfolio center.

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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.