Correlation Between Artisan Small and Profunds Ultrashort
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Profunds Ultrashort 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 Small and Profunds Ultrashort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Small Cap and Profunds Ultrashort Nasdaq 100, you can compare the effects of market volatilities on Artisan Small and Profunds Ultrashort 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 Small with a short position of Profunds Ultrashort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Profunds Ultrashort.
Diversification Opportunities for Artisan Small and Profunds Ultrashort
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Artisan and Profunds is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Profunds Ultrashort Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profunds Ultrashort and Artisan Small 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 Small Cap are associated (or correlated) with Profunds Ultrashort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profunds Ultrashort has no effect on the direction of Artisan Small i.e., Artisan Small and Profunds Ultrashort go up and down completely randomly.
Pair Corralation between Artisan Small and Profunds Ultrashort
Assuming the 90 days horizon Artisan Small Cap is expected to generate 0.58 times more return on investment than Profunds Ultrashort. However, Artisan Small Cap is 1.74 times less risky than Profunds Ultrashort. It trades about 0.07 of its potential returns per unit of risk. Profunds Ultrashort Nasdaq 100 is currently generating about -0.11 per unit of risk. If you would invest 3,737 in Artisan Small Cap on September 7, 2025 and sell it today you would earn a total of 188.00 from holding Artisan Small Cap or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Profunds Ultrashort Nasdaq 100
Performance |
| Timeline |
| Artisan Small Cap |
| Profunds Ultrashort |
Artisan Small and Profunds Ultrashort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Profunds Ultrashort
The main advantage of trading using opposite Artisan Small and Profunds Ultrashort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Profunds Ultrashort 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 Profunds Ultrashort will offset losses from the drop in Profunds Ultrashort's long position.| Artisan Small vs. Artisan Value Income | Artisan Small vs. Artisan Developing World | Artisan Small vs. Artisan Thematic Fund | Artisan Small vs. Artisan Small Cap |
| Profunds Ultrashort vs. Short Real Estate | Profunds Ultrashort vs. Short Real Estate | Profunds Ultrashort vs. Ultrashort Mid Cap Profund | Profunds Ultrashort vs. Ultrashort Mid Cap Profund |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |