Correlation Between Gmo Strategic and Artisan Global

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

By analyzing existing cross correlation between Gmo Strategic Opportunities and Artisan Global Value, you can compare the effects of market volatilities on Gmo Strategic and Artisan Global 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 Gmo Strategic with a short position of Artisan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Strategic and Artisan Global.

Diversification Opportunities for Gmo Strategic and Artisan Global

0.0

Correlation Coefficient

Gmo Strategic  Artisan Global

Pay attention - limited upside

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

Pair Corralation between Gmo Strategic and Artisan Global

If you would invest  2,443  in Artisan Global Value on May 7, 2025 and sell it today you would earn a total of  126.00  from holding Artisan Global Value or generate 5.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Gmo Strategic Opportunities  vs.  Artisan Global Value

Gmo Strategic Opport

Risk-Adjusted Performance

Solid

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

Artisan Global Value

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Global Value are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Artisan Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gmo Strategic and Artisan Global

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

The idea behind Gmo Strategic Opportunities and Artisan Global Value 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.