Correlation Between Artisan International and Selected American
Can any of the company-specific risk be diversified away by investing in both Artisan International and Selected American 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 International and Selected American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan International Fund and Selected American Shares, you can compare the effects of market volatilities on Artisan International and Selected American 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 International with a short position of Selected American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan International and Selected American.
Diversification Opportunities for Artisan International and Selected American
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ARTISAN and Selected is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Artisan International Fund and Selected American Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selected American Shares and Artisan 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 Artisan International Fund are associated (or correlated) with Selected American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selected American Shares has no effect on the direction of Artisan International i.e., Artisan International and Selected American go up and down completely randomly.
Pair Corralation between Artisan International and Selected American
Assuming the 90 days horizon Artisan International is expected to generate 1.25 times less return on investment than Selected American. In addition to that, Artisan International is 1.13 times more volatile than Selected American Shares. It trades about 0.17 of its total potential returns per unit of risk. Selected American Shares is currently generating about 0.24 per unit of volatility. If you would invest 3,737 in Selected American Shares on April 25, 2025 and sell it today you would earn a total of 105.00 from holding Selected American Shares or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan International Fund vs. Selected American Shares
Performance |
| Timeline |
| Artisan International |
| Selected American Shares |
Artisan International and Selected American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan International and Selected American
The main advantage of trading using opposite Artisan International and Selected American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan International position performs unexpectedly, Selected American 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 Selected American will offset losses from the drop in Selected American's long position.| Artisan International vs. Artisan Mid Cap | Artisan International vs. Dodge International Stock | Artisan International vs. Oakmark International Fund | Artisan International vs. Selected American Shares |
| Selected American vs. Marsico Focus Fund | Selected American vs. Artisan International Fund | Selected American vs. Third Avenue Value | Selected American vs. Oakmark Select Fund |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |