Correlation Between Artisan Consumer and Central European

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

By analyzing existing cross correlation between Artisan Consumer Goods and Central European Media, you can compare the effects of market volatilities on Artisan Consumer and Central European 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 Consumer with a short position of Central European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Consumer and Central European.

Diversification Opportunities for Artisan Consumer and Central European

0.0

Correlation Coefficient

Artisan Consumer  Central European

Pay attention - limited upside

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

Pair Corralation between Artisan Consumer and Central European

If you would invest (100.00) in Central European Media on February 3, 2024 and sell it today you would earn a total of  100.00  from holding Central European Media or generate -100.0% return on investment over 90 days.

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

Artisan Consumer Goods  vs.  Central European Media

Artisan Consumer Goods

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Consumer Goods are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Artisan Consumer unveiled solid returns over the last few months and may actually be approaching a breakup point.

Central European Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Central European Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Central European is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Artisan Consumer and Central European

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

The idea behind Artisan Consumer Goods and Central European Media 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.