Correlation Between Multi Index and Artisan Select

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

By analyzing existing cross correlation between Multi Index 2045 Lifetime and Artisan Select Equity, you can compare the effects of market volatilities on Multi Index and Artisan Select 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 Multi Index with a short position of Artisan Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Index and Artisan Select.

Diversification Opportunities for Multi Index and Artisan Select

0.99

Correlation Coefficient

Multi Index  Artisan Select

No risk reduction

The 3 months correlation between Multi and Artisan is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Multi Index 2045 Lifetime and Artisan Select Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Select Equity and Multi Index 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 Multi Index 2045 Lifetime are associated (or correlated) with Artisan Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Select Equity has no effect on the direction of Multi Index i.e., Multi Index and Artisan Select go up and down completely randomly.

Pair Corralation between Multi Index and Artisan Select

Assuming the 90 days horizon Multi Index 2045 Lifetime is expected to generate 0.86 times more return on investment than Artisan Select. However, Multi Index 2045 Lifetime is 1.16 times less risky than Artisan Select. It trades about 0.29 of its potential returns per unit of risk. Artisan Select Equity is currently generating about 0.23 per unit of risk. If you would invest  1,408  in Multi Index 2045 Lifetime on April 30, 2025 and sell it today you would earn a total of  160.00  from holding Multi Index 2045 Lifetime or generate 11.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Multi Index 2045 Lifetime  vs.  Artisan Select Equity

Multi Index 2045

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Index 2045 Lifetime are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multi Index may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Artisan Select Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Select Equity are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Artisan Select may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Multi Index and Artisan Select

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

The idea behind Multi Index 2045 Lifetime and Artisan Select Equity 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.