Correlation Between Artemis Strategic and WW Grainger

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

By analyzing existing cross correlation between Artemis Strategic Investment and WW Grainger, you can compare the effects of market volatilities on Artemis Strategic and WW Grainger 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 Artemis Strategic with a short position of WW Grainger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Strategic and WW Grainger.

Diversification Opportunities for Artemis Strategic and WW Grainger

0.36

Correlation Coefficient

Artemis Strategic  WW Grainger

Weak diversification

The 3 months correlation between Artemis and GWW is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Strategic Investment and WW Grainger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WW Grainger and Artemis 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 Artemis Strategic Investment are associated (or correlated) with WW Grainger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WW Grainger has no effect on the direction of Artemis Strategic i.e., Artemis Strategic and WW Grainger go up and down completely randomly.

Pair Corralation between Artemis Strategic and WW Grainger

If you would invest  1,074  in Artemis Strategic Investment on January 20, 2024 and sell it today you would earn a total of  0.00  from holding Artemis Strategic Investment or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Artemis Strategic Investment  vs.  WW Grainger

Artemis Strategic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artemis Strategic Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Artemis Strategic is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

WW Grainger

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in WW Grainger are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, WW Grainger may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Artemis Strategic and WW Grainger

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

The idea behind Artemis Strategic Investment and WW Grainger 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.