Correlation Between Artisan High and Salient Alternative
Can any of the company-specific risk be diversified away by investing in both Artisan High and Salient Alternative 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 High and Salient Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan High Income and Salient Alternative Beta, you can compare the effects of market volatilities on Artisan High and Salient Alternative 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 High with a short position of Salient Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Salient Alternative.
Diversification Opportunities for Artisan High and Salient Alternative
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Salient is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and Salient Alternative Beta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Alternative Beta and Artisan High 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 High Income are associated (or correlated) with Salient Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Alternative Beta has no effect on the direction of Artisan High i.e., Artisan High and Salient Alternative go up and down completely randomly.
Pair Corralation between Artisan High and Salient Alternative
Assuming the 90 days horizon Artisan High is expected to generate 2.46 times less return on investment than Salient Alternative. But when comparing it to its historical volatility, Artisan High Income is 3.32 times less risky than Salient Alternative. It trades about 0.25 of its potential returns per unit of risk. Salient Alternative Beta is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,211 in Salient Alternative Beta on June 10, 2025 and sell it today you would earn a total of 73.00 from holding Salient Alternative Beta or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan High Income vs. Salient Alternative Beta
Performance |
| Timeline |
| Artisan High Income |
| Salient Alternative Beta |
Artisan High and Salient Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan High and Salient Alternative
The main advantage of trading using opposite Artisan High and Salient Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan High position performs unexpectedly, Salient Alternative 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 Salient Alternative will offset losses from the drop in Salient Alternative's long position.| Artisan High vs. Artisan Value Income | Artisan High vs. Artisan Developing World | Artisan High vs. Artisan Thematic Fund | Artisan High vs. Artisan Small Cap |
| Salient Alternative vs. Nationwide Inflation Protected Securities | Salient Alternative vs. Lord Abbett Inflation | Salient Alternative vs. Ab Bond Inflation | Salient Alternative vs. Short Duration Inflation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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