Correlation Between Artisan International and Prudential Muni

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

By analyzing existing cross correlation between Artisan International Explorer and Prudential Muni High, you can compare the effects of market volatilities on Artisan International and Prudential Muni 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 Prudential Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan International and Prudential Muni.

Diversification Opportunities for Artisan International and Prudential Muni

0.0

Correlation Coefficient

Artisan International  Prudential Muni

Pay attention - limited upside

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

Pair Corralation between Artisan International and Prudential Muni

If you would invest  0.00  in Artisan International Explorer on May 4, 2025 and sell it today you would earn a total of  0.00  from holding Artisan International Explorer or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Artisan International Explorer  vs.  Prudential Muni High

Artisan International

Risk-Adjusted Performance

OK

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

Prudential Muni High

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Artisan International and Prudential Muni

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

The idea behind Artisan International Explorer and Prudential Muni High 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.